The Securities and Exchange Commission (SEC) has adopted rules to standardize climate-related disclosures by public companies and in public offerings.
The rules aim to offer investors reliable information on the financial impact of climate-related risks on a company’s operations and risk management. They build on past requirements by mandating material climate risk disclosures by public companies and in public offerings, the SEC said in a press release.
SEC said that the rules will provide investors with consistent, comparable, and decision-useful information, and issuers with clear reporting requirements. They will also provide specificity on what companies must disclose, which will produce more useful information than what investors see today.
The rules will also require climate risk disclosures to be included in a company’s SEC filings, such as annual reports and registration statements, rather than on company websites, the commission said.
