Securities and Exchange Commission (SEC) Rules of Climate-Related Disclosures

The US Securities and Exchange Commission (SEC) has adopted rules including climate-related disclosures in registration statements and annual reports. The rules are intended to standardize climate-related disclosure requirements as interest in climate-related risks are increasing. 

The final rules require relevant companies to disclose, among others:

• Climate-related risks that may result in material impact on the business and operations of the company
• Description of expenditures and the financial impacts thereof related to company efforts to mitigate or adapt to climate-related risk
• Risk-management measures and processes related to climate-related risk

These disclosures are required to be included in registration statements and annual reports filed with the SEC. The rules also apply to foreign private issuers (i.e., companies based outside the US and doing business in the US). 

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