February 25, 2021 | less than a minute read

SEC Announces Focus on Climate Change Disclosures

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Jacob H. Hupart

Member

Get in touch

Jacob H. Hupart

Member

In one of the first public statements issued by the SEC during the Biden Administration, Acting Chair Lee announced that the SEC would focus on "climate-related disclosure in public company filings."

Early indications of the SEC's new focus on climate change have now been publicly and demonstrably affirmed. The same announcement indicated that the SEC would begin "updating [earlier] guidance" concerning the disclosure of climate change risk.

This focus on climate change risk in regulatory disclosures will likely be accompanied by enforcement measures as the SEC implements its new policy priorities.

Today, I am directing the Division of Corporation Finance to enhance its focus on climate-related disclosure in public company filings. The Commission in 2010 provided guidance to public companies regarding existing disclosure requirements as they apply to climate change matters. As part of its enhanced focus in this area, the staff will review the extent to which public companies address the topics identified in the 2010 guidance, assess compliance with disclosure obligations under the federal securities laws, engage with public companies on these issues, and absorb critical lessons on how the market is currently managing climate-related risks. The staff will use insights from this work to begin updating the 2010 guidance to take into account developments in the last decade. The staff of the SEC plays a critically important role in ensuring compliance with disclosure obligations, including those that implicate climate risk, through its review of public company filings and its engagement with issuers.