The SEC Proposes Mandatory Climate-Related Disclosures

On March 21, 2022, the Securities and Exchange Commission ("SEC") issued a highly-anticipated Proposed Rule that proposes to require public companies to disclose climate-related risks in their registration statements and annual reports filed with the SEC. The Proposed Rule, titled The Enhancement and Standardization of Climate-Related Disclosures for Investors, will mark a watershed moment for ESG transparency and corporate compliance if finalized.

Under the Proposed Rule the following climate-related information would be required to be included in registration statements and periodic reports filed with the SEC:

• Climate-related risks and their actual or likely material impacts on the registrant's business, strategy, and outlook;