Certain Climate Change Disclosures May Be Required Under SEC Regulations

In the shadow of the Environmental Protection Agency's ("EPA") proposed rule for emission reductions for existing power plants, maintaining the appropriate scope and detail of environmental disclosures as related to climate change is under a spotlight for companies subject to the Security and Exchange Commission's ("SEC") disclosure regulations. While there are currently no mandatory medium- or long-term greenhouse gas emission reduction and limited regulations related to greenhouse gases in the United States, public companies with an international footprint are already subject to emissions reduction targets and climate change regulations that affect capital expenditures, earnings, and the competitive position of their business. Thus, an understanding of the SEC's disclosure requirements in the context of climate change is certainly necessary for some public companies and increasingly necessary for the rest.