SEC Issues Interpretive Guidance Regarding Climate Change Disclosure
On January 27, 2010, the Securities and Exchange Commission (“SEC”) voted (in a 3-2 vote) to issue an interpretive release providing guidance for disclosures relating to climate change. While the Release imposes no new disclosure obligations, it does serve to remind reporting companies that a number of existing SEC disclosure regulations may require disclosure of certain matters relating to the potential effects of climate change. The Release focuses on four climate change topics that may warrant disclosure, depending on an issuer’s particular circumstances:
- impacts of existing and pending laws and regulations relating to climate change;
- impacts of foreign and international treaties and accords relating to climate change;
- indirect impacts of legal, technological, political and scientific developments regarding climate change; and
- physical impacts of climate change.