

United States: 

US SEC Division Of Company Finance Publishes Sample Letter To Companies Relating to Local climate Change Disclosures



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The US Securities and Exchange Commission’s
(SEC) Division of Corporation Finance
(Division) revealed a sample letter with responses
that the Team intends to concern to community companies relating to their
local climate transform disclosures-or lack thereof-in SEC filings. As
defined in a prior Mayer Brown article, Commissioner Lee, when
she was Acting Chair of the SEC previously this year, directed the
Personnel to raise its attention on the ways in which community
providers implement the SEC’s 2010 Guidance Pertaining to
Disclosure Associated to Local climate Adjust, which offers direction to
providers about the SEC principles that may perhaps involve disclosure about
climate modify, regardless of the fact that climate modify is not
explicitly referenced in the existing procedures.
The SEC’s disclosure necessities are mostly
ideas-based mostly and may perhaps have to have diverse information and facts from
diverse companies, which includes local climate change-linked
info.
The sample opinions could utilize to numerous companies, and ask for
evaluation, as nicely as disclosure, to the extent substance. As an
illustration, just one comment states:
“We observe that you furnished
far more expansive disclosure in your company social obligation
report (CSR report) than you delivered in your SEC filings. Make sure you
advise us what thing to consider you gave to supplying the identical form of
local weather-linked disclosure in your SEC filings as you presented in
your CSR report.”
When the SEC’s rule record suggests that a weather improve
disclosure rulemaking is on the near-phrase agenda, no new policies have
been adopted or proposed yet. Accordingly, the sample remarks are
competent to demonstrate that revised disclosure is only demanded to
the extent material. That reported, corporations need to be prepared to
offer a materiality analysis in response to SEC responses.
Regardless of whether or not corporations obtain local weather adjust-connected
feedback from the Workers, they should re-browse the 2010 Assistance
Relating to Disclosure Related to Local climate Modify and examine irrespective of whether
any of the topics are applicable. Businesses need to also ensure that
they have effective disclosure controls and methods in position to
facilitate disclosure of material local climate alter information in
their SEC filings.
The Division’s sample letter can be discovered listed here, and the SEC’s 2010 Assistance
Concerning Disclosure Relevant to Local climate Alter can be found right here.
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