The Securities and Exchange Commission (SEC) has not yet approved its climate-related disclosure rule, despite indications the vote would occur this fall. Implementation of the rule, parts of which are expected to apply fiscal year 2023 for large accelerated filers, might be delayed by litigation.
The proposed rule is a sweeping potential mandate that would force all public companies to quantify, measure, and disclose their effect on the environment. It would order public companies to include disclosures about how climate-related risks affect their strategy, business model, and outlook; how the company’s board and management oversee climate-related issues; and any plans for transition to a lower carbon footprint.
