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

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    EP Reaches Agreement on Corporate Sustainability Reporting Directive

    The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).

    June 21, 2022 WebPage Regulatory News
    News

    PRA Consults on Model Risk Management Principles for Banks

    The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.

    June 21, 2022 WebPage Regulatory News
    News

    EC Regulation Amends Standards for Calculating Credit Risk Adjustments

    The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    BIS Bulletins Discuss DeFi Lending and Aspects of Crypto-Assets

    The Bank for International Settlements (BIS) published bulletins on lending in decentralized finance (DeFi) system, on blockchain scalability and fragmentation of crypto, and on extractable value and market manipulation in crypto and decentralized finance.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8292