SEC Proposes Expanded Climate-Related Disclosure

On March 21, the SEC proposed rules¹ on the enhancement and standardization of climate-related disclosures in reporting companies' registration statements and annual reports. The proposed rules build on guidance² provided in 2010 on climate change-related disclosures. If adopted, the proposed rules would require extensive new quantitative and qualitative disclosure for reporting companies via Regulations S-K and S-X. The proposed rules are segmented into three parts: (1) disclosures to address reporting companies' climate-related risk factors and associated governance practices; (2) a multi-layered calculation and reporting scheme for greenhouse gas ("GHG") emissions; and (3) consistent standards for publicly-stated climate-related goals and targets. If adopted, the disclosure requirements would be phased-in starting in fiscal year 2023 based on filer status.