TheCorporateCounsel.net

This time last year, we were blogging about the SEC Staff’s first few rounds of climate change comment letters, which were preceded by Corp Fin posting a sample. This Bloomberg Law article reports that the SEC Staff has sent climate-related letters to more than 12 companies in the past three months.

The comments seem to be pretty consistent with earlier rounds — the letters focus on consistency between disclosures in sustainability reports and SEC filings and inquire about the impact of severe weather and how climate risk impacts customer demand and competition. And also, like the prior rounds of comments, the SEC Staff has gotten into the nitty-gritty with companies on the impact of climate change — insisting on details — and the article describes at least one company that has agreed to revise disclosures.

Here are some of the response letters available on EDGAR for those interested:

– Estee Lauder’s first and second response

– Eli Lilly’s first, second and third response

– Oracle’s first and second response

– PENN Entertainment’s first and second response

The TL;DR is this: For companies in annual reporting season, know that SEC comments on climate disclosures continue apace, and the Staff is not waiting on final rules. In terms of what to expect, the newest letters seem consistent with Corp Fin’s sample comment letter.

– Meredith Ervine