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SEC's Climate Change Guidance

By Kristin Watt

On January 27, 2010, the Securities and Exchange Commission voted to provide public companies with interpretive guidance on disclosure requirements related to business or legal developments on climate change. According to the SEC’s press release, the interpretive guidance is intended to assist companies with disclosures of climate change impacts under the SEC's existing disclosure regulations.

The interpretive guidance highlights four areas as examples of when climate change disclosures may be triggered:

• Impact of Legislation and Regulation
• Impact of International Accords
• Indirect Consequences of Regulation or Business Trends
• Physical Limitations of Climate Change

The SEC expects to post a copy of the interpretive guidance on its website when is it available. 
 

Tags: Climate Change, Environment

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