SEC Evaluates Ways to Improve Tracking Corporate Disclosures of Environmental Information

The U.S. Government Accountability Office ("GAO") recently issued a report encouraging the U.S. Securities Exchange Commission ("SEC") to improve the means by which it tracks environmental disclosures in corporate filings. This report, entitled ENVIRONMENTAL DISCLOSURE: SEC Should Explore Ways to Improve Tracking and Transparency of Information (GAO-04-808, July 2004), is further evidence that corporate disclosures of environmental information have come under increased scrutiny in the wake of recent scandals in the business world. The SEC does not appear to intend to implement substantial changes to current reporting requirements for environmental information. However, the SEC has stated that it will (1) evaluate means by which the SEC can take better advantage of U.S. Environmental Protection Agency ("EPA") data in evaluating the adequacy of environmental disclosures in corporate filings and (2) make additional information available to the public via SEC’s web site. As a result,