SEC Rule on Climate-Related Disclosures: Governance Implications

By NACD Staff


Climate Risk Disclosure Securities and Exchange Commission

Nearly two years after proposing its climate disclosure rules and reviewing an extraordinary 24,000 comment letters, the SEC voted 3–2 on March 6th to approve a requirement for registrants to disclose certain climate-related information in registration statements and annual reports.

The final rule calls on public companies to provide investors with climate-related disclosures ranging from a company’s climate risk oversight strategy to its greenhouse gas emissions, as well as the party charged with oversight responsibility. The recommendations outlined in the proposal align with those from the Task Force on Climate-Related Financial Disclosures (TCFD).

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