SEC's Proposed Rule for Climate-Related Disclosures Would Flood Public Companies with New Disclosure Obligations
Securities Enforcement Defense attorneys Scott Mascianica, Catherine Rowsey and Jessica Magee co-authored an article for The Texas Lawbook discussing the U.S. Securities and Exchange Commission's (SEC) proposed climate-related disclosure rule. If approved, the rule would represent one of the most significant disclosure initiatives in decades, requiring companies to disclose information on climate-related risks, climate-related expenditures and greenhouse gas emissions, among a long list of other items. In this article, the authors provide background on other climate-related disclosure initiatives from the SEC, outline this latest one and explain why it would necessitate major changes to management and board process as well as expose public companies to increased litigation and enforcement risk.
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