SEC Proposes Sweeping Climate-Related Disclosure Rules

The U.S. Securities and Exchange Commission (SEC) on March 21, 2022, proposed rules that would require registrants to disclose information regarding climate-related risks in certain periodic reports and registration statements. Totaling 510 pages, the proposed rules are the culmination of an intense focus by the SEC on climate-related issues since President Joe Biden took office. The proposed rules are far-reaching, highly specific and will require significant compliance efforts from each public company.

Summary of Required Disclosures

Under the SEC's proposed rules, registrants will be required to include climate-related risk disclosures in its annual reports and registration statements, including the following key provisions: