Policy and Legal

Policy and Legal

SEC Previews Climate Rules

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Securities and Exchange Commission Chairman Gary Gensler said that the agency will release proposed rules by the end of this year requiring that public companies disclose risks related to climate change, according to MarketWatch.

What they’ll cover: Chairman Gensler indicated that he wants climate disclosures to be “consistent and comparable” and provide decision-useful information to investors. He said staff is considering whether such disclosures would be included in companies’ 10-K filings, whether they would include Scope 1, Scope 2 and/or Scope 3 emissions and whether certain metrics would be required for specific industries.

The challenge: Many manufacturers already voluntarily disclose a significant amount of information about their climate efforts, but an overbroad mandate could impose new cost burdens on companies without providing useful information to shareholders.

What we’re doing: The NAM has consistently stood up for manufacturers, encouraging the SEC to adopt a principles-based approach rather than a uniform mandate. Back in June, the NAM laid out the manufacturing industry’s perspective for the SEC and provided a list of principles that should guide any eventual disclosure framework. As the process moves forward, the NAM will continue to engage with the SEC and advocate for manufacturers.

Learn more: For more information about our principles and the work the NAM has been doing in this area, check out this recent story.

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