At an open meeting on Wednesday January 27, the U.S. Securities and Exchange Commission voted to issue interpretive guidance concerning climate change-related disclosure by SEC-reporting companies. While the SEC has not yet published the guidance, the agency laid out the principal areas that companies will need to consider when evaluating whether business or legal developments related to climate change could have a material impact on their business. The SEC stressed that its climate change disclosure guidance will not change existing SEC disclosure requirements, nor is it intended to change long-standing interpretations of materiality. Nonetheless, the mere fact that the SEC is issuing guidance indicates that climate change disclosure is a growing area of focus for the SEC and an area where many companies may need to expand their disclosure.

Click here to view memo, SEC Votes to Issue Interpretive Guidance on Climate Change Disclosure