TheCorporateCounsel.net

A WSJ article from late last week reported that the SEC is considering less onerous climate-related financial reporting after significant pushback to its proposal from companies – as well as investors. Here’s an excerpt:

The final version of the SEC rules, expected this year, will likely still mandate some climate disclosures in financial statements, according to the people close to the agency. But the commission is weighing making the requirements less onerous than originally proposed, the people said, such as by raising the threshold at which companies must report climate costs.

The article continues:

After the backlash to the climate proposals, officials are considering changes such as a higher trigger for disclosure, using different percentages depending on the financial item in question or eliminating a bright-line test altogether, the people close to the agency said.

Some of the groups pushing for the new climate-disclosure rules said they are open to changes.

The SEC doesn’t appear to be signaling that it’s giving up on the climate disclosure rule altogether – although that might be the preference of two of the Commissioners, based on public speeches like this one. At this point, the Staff is continuing to wade through thousands of comments on its way towards a final rule. They’re aiming for that rule to be more workable for companies – and survive anticipated legal challenges.

– Liz Dunshee