SEC Proposes Rules To Require New Climate-Related Disclosures

On March 21, 2022, the Securities and Exchange Commission (SEC) issued for comment proposed rules requiring companies to include climate-related disclosures in their registration statements and periodic reports filed under the Securities Act of 1933 and the Securities Exchange Act of 1934. This proposal would implement a disclosure framework aligned with two sets of internationally recognized standards: the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) and the form of greenhouse gas emissions accounting set forth by the Greenhouse Gas Protocol. The comment period on the proposed rules will remain open for 30 days after publication in the Federal Register, or until May 20, 2022, whichever period is longer.¹