Featured Product

    SEC Proposes Rules on Cyber Risk and Climate Risk Disclosures

    March 21, 2022

    The U.S. Securities and Exchange Commission (SEC) proposed the rules to enhance and standardize climate risk disclosures for investors as well as the rules on cybersecurity risk management, strategy, governance, and incident disclosure by public companies.

    The comment period for both the aforementioned proposals is 30 days after their respective publication in the Federal Register, or 60 days after the date of issuance and publication on the SEC website, whichever period is longer. The proposed rules on climate risk disclosures require registrants to provide certain climate-related information in their registration statements and annual reports, including information about climate-related financial risks and financial metrics in their financial statements and disclosure of registrants greenhouse gas emissions. The proposed climate-related disclosure framework is modeled in part on the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations and draws on the Greenhouse Gas (GHG) Protocol. The proposed rules would require a registrant to disclose information about:

    • governance of climate-related risks and relevant risk management processes
    • 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
    • how any identified climate-related risks have affected or are likely to affect the registrant’s strategy, business model, and outlook
    • 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
    • direct greenhouse gas emissions (Scope 1) and indirect emissions from purchased electricity or other forms of energy (Scope 2)
    • greenhouse gas emissions from upstream and downstream activities in its value chain (Scope 3), if material or if the registrant has set a greenhouse gas emissions reduction target or goal that includes Scope 3 emissions
    • climate-related targets or goals, and transition plan, if any

    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 proposals for greenhouse gas emission 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 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 disclosures. If adopted this year, the rules are expected to apply beginning with the 2023 annual report.

     

    Related Links

     

    Keywords: Americas, US, Banking, ESG, Climate Change Risk, Disclosures, Transition Risk, TCFD, TCFD Recommendations, Cyber Security, Cyber Risk, SEC, Headline

    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

    FSB and NGFS Publish Initial Findings from Climate Scenario Analyses

    The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.

    November 15, 2022 WebPage Regulatory News
    News

    FSB Issues Reports on NBFI and Liquidity in Government Bonds

    The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.

    November 14, 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

    EU Finalizes Rules Under Crowdfunding Service Providers Regulation

    The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.

    November 08, 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
    RESULTS 1 - 10 OF 8596