www.nasdaq.com Open in urlscan Pro
2a02:26f0:1700:789::1b46  Public Scan

Submitted URL: https://info.evestment.com/e/16162/limate-related-disclosures-for/4jb9bh/3489182939?h=Sf62-9bWWK5x30CD94o2mQRmB-6CyNxoW9SbE...
Effective URL: https://www.nasdaq.com/press-release/sec-proposes-rules-to-enhance-and-standardize-climate-related-disclosures-for
Submission: On April 10 via api from CH — Scanned from DE

Form analysis 6 forms found in the DOM

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POST

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POST

<form method="post" class="textarea-field__form" __bizdiag="0" __biza="WJ__">
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      <ul>
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        <li>Copy and paste multiple symbols separated by spaces. </li>
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      <p>These symbols will be available throughout the site during your session.</p>
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  <button class="c-btn ">Save data</button>
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  __bizdiag="-1895915463" __biza="WJ__" novalidate="novalidate"></form>

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SEC PROPOSES RULES TO ENHANCE AND STANDARDIZE CLIMATE-RELATED DISCLOSURES FOR
INVESTORS




Published
Mar 21, 2022 1:09PM EDT

 * 
 * 
 * 
 * 

Washington, D.C.--(Newsfile Corp. - March 21, 2022) - The Securities and
Exchange Commission today proposed rule changes that would require registrants
to include certain climate-related disclosures in their registration statements
and periodic reports, including information about climate-related risks that are
reasonably likely to have a material impact on their business, results of
operations, or financial condition, and certain climate-related financial
statement metrics in a note to their audited financial statements. The required
information about climate-related risks also would include disclosure of a
registrant’s greenhouse gas emissions, which have become a commonly used metric
to assess a registrant’s exposure to such risks.

"I am pleased to support today’s proposal because, if adopted, it would provide
investors with consistent, comparable, and decision-useful information for
making their investment decisions, and it would provide consistent and clear
reporting obligations for issuers," said SEC Chair Gary Gensler. "Our core
bargain from the 1930s is that investors get to decide which risks to take, as
long as public companies provide full and fair disclosure and are truthful in
those disclosures. Today, investors representing literally tens of trillions of
dollars support climate-related disclosures because they recognize that climate
risks can pose significant financial risks to companies, and investors need
reliable information about climate risks to make informed investment decisions.
Today’s proposal would help issuers more efficiently and effectively disclose
these risks and meet investor demand, as many issuers already seek to do.
Companies and investors alike would benefit from the clear rules of the road
proposed in this release. I believe the SEC has a role to play when there’s this
level of demand for consistent and comparable information that may affect
financial performance. Today’s proposal thus is driven by the needs of investors
and issuers."

The proposed rule changes would require a registrant to disclose information
about (1) the registrant’s governance of climate-related risks and relevant risk
management processes; (2) how any climate-related risks identified by the
registrant have had or are likely to have a material impact on its business and
consolidated financial statements, which may manifest over the short-, medium-,
or long-term; (3) how any identified climate-related risks have affected or are
likely to affect the registrant’s strategy, business model, and outlook; and (4)
the impact of climate-related events (severe weather events and other natural
conditions) and transition activities on the line items of a registrant’s
consolidated financial statements, as well as on the financial estimates and
assumptions used in the financial statements.

For registrants that already conduct scenario analysis, have developed
transition plans, or publicly set climate-related targets or goals, the proposed
amendments would require certain disclosures to enable investors to understand
those aspects of the registrants’ climate risk management.

The proposed rules also would require a registrant to disclose information about
its direct greenhouse gas (GHG) emissions (Scope 1) and indirect emissions from
purchased electricity or other forms of energy (Scope 2). In addition, a
registrant would be required to disclose GHG emissions from upstream and
downstream activities in its value chain (Scope 3), if material or if the
registrant has set a GHG emissions target or goal that includes Scope 3
emissions. These proposals for GHG emissions disclosures would provide investors
with decision-useful information to assess a registrant’s exposure to, and
management of, climate-related risks, and in particular transition risks. The
proposed rules would provide a safe harbor for liability from Scope 3 emissions
disclosure and an exemption from the Scope 3 emissions disclosure requirement
for smaller reporting companies. The proposed disclosures are similar to those
that many companies already provide based on broadly accepted disclosure
frameworks, such as the Task Force on Climate-Related Financial Disclosures and
the Greenhouse Gas Protocol.

Under the proposed rule changes, accelerated filers and large accelerated filers
would be required to include an attestation report from an independent
attestation service provider covering Scopes 1 and 2 emissions disclosures, with
a phase-in over time, to promote the reliability of GHG emissions disclosures
for investors.

The proposed rules would include a phase-in period for all registrants, with the
compliance date dependent on the registrant’s filer status, and an additional
phase-in period for Scope 3 emissions disclosure.

The proposing release will be published on SEC.gov and in the Federal Register.
The comment period will remain open for 30 days after publication in the Federal
Register, or 60 days after the date of issuance and publication on sec.gov,
whichever period is longer.

SOURCE Newsfile SEC Press Digest






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