As widely reported, yesterday, SEC Acting Chair Allison Lee directed the Division of Corporation Finance to enhance its focus on climate-related disclosure in public company SEC filings. More specifically, “enhanced focus” assertedly includes: (i) reviewing the extent to which such companies address the topics identified in the Commission’s 2010 climate disclosure guidance, (ii) assessing companies’ compliance with disclosure obligations under the federal securities laws, (iii) engaging with companies on these issues, and (iv) absorbing critical lessons on how the market is currently managing climate-related risks. These enhanced focus activities will, in turn, inform consideration of updated SEC guidance that takes into account developments since 2010.
She stated in part:
Now more than ever, investors are considering climate-related issues when making their investment decisions. It is our responsibility to ensure that they have access to material information when planning for their financial future. Ensuring compliance with the rules on the books and updating existing guidance are immediate steps the agency can take on the path to developing a more comprehensive framework that produces consistent, comparable, and reliable climate-related disclosures.
See our report in last week’s Alert: “On Deck: Climate Risk Disclosure”; these articles: “SEC Opens Review of Corporate Climate Change Disclosures” (WSJ), “SEC to update climate-related risk disclosure requirements” (TheHill), “U.S. regulator launches review of companies' climate risk disclosures” (Reuters), and “ESG Reporting Top Priority for SEC Director on Leave From Harvard” (Bloomberg Tax); and additional information and resources on our Sustainability/ESG page >> Regulatory/Quasi-Regulatory.