SEC Proposes Watershed Climate-Related Disclosure Requirements

On March 21, 2022, the Securities and Exchange Commission announced a long-awaited proposal that would require public companies to disclose extensive climate-related information in their registration statements and periodic reports. Among other requirements, the proposed rules would require a company to disclose information about climate-related risks and their impact on the company, as well as information on the company's climate-related governance and risk management processes. The proposed rules also would require disclosure of specified greenhouse gas (GHG) emissions, with a phased-in attestation requirement with respect to some emissions for certain categories of filers, and of climate-related financial statement metrics in the notes to the audited financial statements. Liability safe harbors would be available in some circumstances.