On April 11, 2022, the Securities and Exchange Commission (SEC) proposed a rule under the Securities Act of 1933 and Securities Exchange Act of 1934 to require registrations to provide certain climate-related information in their registration statements and annual reports. Under the proposed rule, registrants would be required to disclose climate-related risks that are reasonably likely to have a material impact on their business, results of operations, or financial condition. Registrants would also have to disclose their greenhouse gas emissions, along with certain climate-related financial metrics. Registrants’ greenhouse gas emissions disclosures would include direct (Scope 1) and indirect (Scope 2) greenhouse gas emissions, along with greenhouse gas emissions generated by suppliers and partners (Scope 3), when those emissions are material or included in a company’s emissions targets.
SEC is accepting comments until May 20, 2022.