Climate Disclosures - A Deep Dive Into the SEC’s Proposed New Governance, Strategy and Risk Disclosures

In a highly anticipated meeting, on March 21, 2022, the U.S. Securities and Exchange Commission (“SEC”) proposed sweeping new climate change disclosure requirements.  This Briefing focuses on the proposed new governance, strategy, business model, outlook, risk and target disclosures. Discussion will include proposed disclosures surrounding board of directors’ climate expertise and implications of the new rules for setting climate-related targets.  Companies should begin planning now for more extensive and complex disclosure requirements likely to be enacted from this proposal.  Please join Gary M. Brown of Nelson Mullins Riley & Scarborough LLP and SEC Institute Directors Bob J. Laux and George M. Wilson as they discuss the proposed disclosure requirements and what to do now to plan for the new disclosures.

In this Briefing faculty will:

• Discuss the rationale for the changes presented in the SEC’s proposed rule – 2 minutes
• Review the foundations for the proposed rules in the Task Force on Climate-related Financial Disclosures (TCFD) framework – 3 minutes
• Explain governance-related disclosures – 10 minutes
• Board of Directors’ oversight
• Disclosure of directors’ expertise considerations
• Board considerations for risk evaluation
• Board considerations for targets and goals
• Management’s role and process disclosures
• Describe strategy, business model and outlook disclosures – 10 minutes
• Potential business and financial impacts of climate-related risks
• Physical risk disclosures
• Transition risk considerations
• Short-, medium- and long-term time horizons
• Internal carbon price disclosures
• Define risk management disclosures – 10 minutes
• Disclosure of processes for identifying, assessing and managing climate-related risks
• Illustrate targets and goals disclosures– 10 minutes
• Required disclosures if targets are set
• Scope of activities included in the target
• Details of each target
• Discuss phase-in requirements – 5 minutes
• Recommended action steps for companies to consider – 10 minutes

You may also be interested in PLI’s upcoming One-Hour Briefings focused on the greenhouse gas emissions disclosures and financial reporting requirements in the SEC’s Proposed Rule for climate-related disclosures.

If you would like an overview of the proposed rule, PLI’s One-Hour Briefing “Climate Change – The SEC’s Proposed New Disclosures” is available on-demand.

Program Level:  Update 

Intended Audience:  Accountants and attorneys who deal with SEC reporting and disclosure and related accounting issues, including CFOs, controllers and their staff, internal auditors, partners of public accounting firms and their staff, in-house counsel, and outside attorneys

Prerequisites:  None 

Advanced Preparation:  None