Compliance Perspectives

By Adam Turteltaub Currently on hold due to pending court challenges, the SEC’s rules to standardize climate-related disclosures created a fire storm of controversy and comments when first proposed. The final rules (assuming the courts sides with the SEC), explains Laura Ann Smith and Judy Mayo of the communications firm Labrador (LinkedIn), reflected strong industry pushback, easing the burden on some 4000 filers. Nonetheless, there are serious demands on industry. To quote from the SEC press release, registrants will be required to disclose: Climate-related risks that have had or are reasonably likely to have a material impact on the registrant’s business strategy, results of operations, or financial condition; The actual and potential material impacts of any identified climate-related risks on the registrant’s strategy, business model, and outlook; If, as part of its strategy, a registrant has undertaken activities to mitigate or adapt to a material climate-related risk, a quantitative and qualit