SEC Unveils Landmark Proposed Rules On Climate Change Disclosures

Original Kelley Drye Client Advisory posted by Courtney Kleshinski on March 22, 2022.

On March 21, the U.S. Securities and Exchange Commission (SEC) unveiled its long-anticipated draft proposed rules for mandatory climate disclosures that would align the United States with other developed economies, particularly the EU and the UK, which have focused on financial disclosures related to climate change as a useful tactic to promote environmentally-conscious policies.

At an open meeting, the SEC proposed rules to significantly expand and standardize registrants' climate-related disclosures for investors. The proposed rules would employ mandatory, prescriptive disclosures in periodic reports and registration statements to address topics related to greenhouse gas (GHG) emissions and global climate change.