SEC Proposes Climate-Related Disclosure Requirements

On March 21, the Securities and Exchange Commission (SEC) proposed rule changes that would require registrants to include certain climate-related disclosure in their registration statements and periodic reports. The proposed rule would require companies to disclose information regarding climate-related risks that are reasonably likely to have a material impact on their businesses, results of operations, or financial conditions. Additionally, companies would be required to disclose their greenhouse gas emissions (GHG Emissions) and to include certain climate-related metrics in their financial statements. SEC Chair Gary Gensler stated that this proposal would "provide investors with consistent, comparable, and decision-useful information for making their investment decisions, and it would provide consistent and clear reporting obligations for issuers." The proposed rules, described in brief below, are based in part on guidance from the Task Force on Climate-related