SEC Climate Rule And Human Capital Disclosers

SEC Climate Change Disclosure

Final Ruling expected in late - 2023, per the SEC’s website

On March 21, 2022, the SEC issued their proposed rules, with RFCs, on Climate Risk Disclosures. This was the most comprehensive proposal from the SEC since Sarbanes-Oxley, and its ramifications are as profound. The Climate Rule Framework aligns fairly closely, but not exactly, to the TCFD framework that has already been adopted by issuers, investors, and other market participants and reinforce the SEC’s view that the framework would provide an appropriate foundation for the proposed rules.The proposed climate-related provisions under Regulation S-X will require a registrant to disclose in a note to its financial statements certain disaggregated climate-related financial statement metrics that are mainly derived from existing financial statement line items. The proposed rules would require disclosure falling under the following three categories of information: financial impact metrics, expenditure metrics, and financial estimates and assumptions.