In a July 28, 2021 speech, Securities and Exchange Commission (SEC) Chair Gary Gensler announced that the SEC would consider adopting proposed regulations for mandatory climate risk disclosures for public companies before the end of 2021. Although the timing is uncertain for final regulations, these disclosures may be required at some point during 2022 for fiscal-year companies and by year-end 2022 for calendar-year companies.
As part of efforts to formulate recommendations for the regulatory proposal, Gensler has asked the SEC staff to consider the extent to which disclosures should be required, including: (1) What actions can a company take to combat climate change? and (2) How will climate change affect a company’s business and how can a company address its impact?
Below we outline the key components of Gensler’s speech:
Companies should begin to budget time and resources toward complying with the anticipated mandatory climate change and climate risk disclosures, which may be finalized as early as mid-2022.
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Insider August 2021 | .2 MB |