Divided SEC Adopts Guidance On Climate Disclosure, But Uncertainty Remains

Today, by a vote of three to two, the SEC adopted new interpretive guidance on how public companies should evaluate the impacts of climate change in their communications with shareholders. Such guidance had long been sought by certain pension funds, shareholder advocacy groups and states, who were unsatisfied with the varied nature of corporate disclosure concerning climate change. While a copy of the guidance has not yet been made available, the Commissioners discussed the guidance at length.

The SEC identified four topics to be evaluated and, as appropriate, discussed in disclosures:

• The impact of existing as well as pending climate-change legislation and regulation.
• The impact of international accords and treaties on climate change or greenhouse gas emissions.