SEC Issues Proposed Rules On Climate-Related Disclosures

On March 21, 2022, the Securities and Exchange Commission (SEC) voted (in a 3:1 decision) to propose new rules "To Enhance and Standardize Climate-Related Disclosures for Investors." The proposed rules would require disclosures of climate-related risks, greenhouse gas emissions, as well as certain climate-related financial metrics, and would impose attestation and assurance requirements on certain aspects of the disclosures. The comment period on the proposed rules will be open for 30 days following publication in the Federal Register, or until May 20, 2022, whichever is later. If adopted, the SEC envisions that the rules could become effective as early as December 2022, though the requirements would be phased in according to the registrant's status and the type of disclosure, with requirements beginning in fiscal year 2023 or later.