ABSTRACT

Overview of the SEC Climate Risk Disclosure Proposed Rule [May 17, 2022]   [open pdf - 528KB]

From the Document: "On March 21, 2022, the Securities and Exchange Commission (SEC) voted 3-1 to issue sweeping proposed climate-related disclosure rules for public companies. In issuing the proposed rules, the SEC cited its existing statutory authorities under the federal securities laws--specifically, the Securities Act of 1933 (P.L. [Public Law] 73-22) and the Securities Exchange Act of 1934 (P.L. 73-291). The proposal represents a more prescriptive and detailed approach to climate-related disclosures relative to the existing broad, principles-based climate-related disclosure regime embodied in the SEC's 2010 'Guidance Regarding Disclosure Related to Climate Change.' Among other things, it would require all public companies, as a growing number voluntarily do, to report on their direct greenhouse gas (GHG) emissions and under certain circumstances their upstream and downstream GHG emissions. Public companies would also be required to report on the impacts of climate-related natural events and transitional activities to mitigate such impacts on their consolidated financial statements. [...] If adopted, the disclosure requirements would direct domestic or foreign SEC registrants to include climate-related information in their registration statements, such as Form S-1, and their periodic reports, such as Form 10-K. The proposed disclosures can be divided into four broad types described below: climate-related risks, GHG emissions, targets and goals, and audited financial statement disclosures."

Report Number:
CRS In Focus, IF12108
Author:
Publisher:
Date:
2022-05-17
Copyright:
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Format:
pdf
Media Type:
application/pdf
URL:
Help with citations