Almost two years after releasing its initial proposal, today the U.S. Securities and Exchange Commission (SEC) finalized its rule on The Enhancement and Standardization of Climate-Related Disclosures for Investors. As noted in the final rule release, “The final rules will require information about a registrant’s climate-related risks that have materially impacted, or are reasonably likely to have a material impact on, its business strategy, results of operations, or financial condition. In addition, under the final rules, certain disclosures related to severe weather events and other natural conditions will be required in a registrant’s audited financial statements.”
For additional details, refer to the SEC’s Press Release and Fact Sheet.