Featured Product

    Recent SEC Letter Indicates Climate Change Disclosures Remain Priority

    September 22, 2021

    The U.S. Securities and Exchange Commission (SEC) is expected to propose requirements on climate disclosures in the near future and the proposal is expected to be informed by an earlier request for public input. The comment period for this public input request ended in June 2021, with SEC receiving numerous responses. Three out of every four of these responses support mandatory climate disclosure rules. In this backdrop, the SEC Division of Corporation Finance recently published an “illustrative” letter indicating sample comments that the Division may issue to companies regarding their climate-related disclosure or the absence of such disclosure. The comments in the sample letter pertain to compliance with the topics addressed in the 2010 Climate Change Disclosure Guidance of SEC.

    The sample letter outlines a non-exhaustive list of the issues that companies should consider. SEC specified that any comments it issues to a company would be appropriately tailored to the specific company and industry and would consider the disclosure that a company has provided in SEC filings. The disclosure related issues discussed in the 2010 Climate Change Guidance include the impact of pending or existing climate-change related legislation, regulations, and international accords; the indirect consequences of regulation or business trends; and the physical impact of climate change. The Division of Corporation Finance selectively reviews filings made under the Securities Act and the Exchange Act to monitor and enhance compliance with applicable disclosure requirements. The key comments in the sample letter relate to the:

    • Disclosure of material effects of transition risks related to climate change that may affect business, financial condition, and results of operations
    • Disclosure of any material litigation risks related to climate change and explain the potential impact to the company
    • Revision of disclosure to identify material pending or existing climate change-related legislation, regulations, and international accords
    • Revision of disclosure to identify any material past and/or future capital expenditures for climate-related projects.
    • Indirect consequences of climate-related regulation or business trends
    • Physical effects of climate change on operations and results 

     

    Related Links

    Keywords: Americas, US, Banking, Securities, Climate Change Risk, ESG, Disclosures, Transition Risk, TCFD, TCFD Recommendations, SEC

    Featured Experts
    Related Articles
    News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News
    News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News
    News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582