SEC’s Proposed Rule for Climate-Related Disclosures Would Flood Public Companies with New Disclosure Obligations
The U.S. Securities and Exchange Commission released its proposed disclosure rule last week that, if approved, would require registrants to disclose a tidal wave of information in annual reports and registration statements. The SEC’s proposal would result in a tectonic shift for how public companies assess, track, measure and disclose climate-related risks, would likely necessitate significant changes to management and board processes and composition, and expose public companies to increased litigation and enforcement risk.