SEC Proposes New Disclosure Rules on Climate Change

In a broad new rule proposal, the Securities and Exchange Commission would require both domestic and foreign registrants to provide climate-related information in their filings and periodic reports. The proposed rule would require disclosure of “climate-related risks that are reasonably likely to have a material impact on its business, results of operations, or financial condition.” A registrant would be required to first assess and then disclose its greenhouse gas emissions and other “climate-related financial metrics” in their audited financial statements. The proposed rule would also require a company’s board and management to provide information on its climate change risk management and risk mitigation processes. 

The SEC is proposing a gradual phase-in period for rule compliance considering a registrant’s filer status, and their ability to assess the risks and comply with climate-related financial metrics. The short comment deadline is May 20, 2022, or thirty days after publication of the rule in the Federal Register – whichever is longer.

How Bates Can Help:

Bates Compliance provides tailored compliance consulting solutions for financial services clients. Our compliance team includes senior compliance staff and former regulators with expertise in the development of policies, procedures, supervisory processes, and best practices to help enhance compliance and supervisory systems. Bates ESG consultants and experts can help your firm achieved ESG compliance.

Please contact Bates Compliance Managing Director Hank Sanchez and Insurance Managing Consultant Greg Faucher to learn more.