Challenges and Solutions to Meeting SEC Climate-Risk Disclosure Rules

On March 21, the U.S. Securities and Exchange Commission (SEC) finally released its proposed rules to require publicly traded companies to disclose their climate-related risks to investors. The rules include not only reporting of material and financial risks, but will also require disclosures on greenhouse gas (GHG) emissions. While some companies are already disclosing this information as part of their ESG programs, this SEC rule would standardize the practice.