SEC Proposes New Climate-Related Disclosure Requirements

The Securities and Exchange Commission (SEC) recently published proposed rules that would require public companies to include substantial climate-related disclosures in their registration statements and annual reports on Form 10-K. SEC Chair Gary Gensler stated that the 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 would apply to public companies with reporting obligations under the Securities Exchange Act of 1934 (with certain disclosure exemptions for smaller reporting companies) but, as currently written, would not apply to registered investment companies or business development companies.