CFO Dive: Standard-setters consider softer start to climate risk disclosure

Eversheds Sutherland Partner Darryl Smith is quoted in this CFO Dive article discussing the Securities and Exchange Commission’s (SEC) plans to release a final rule requiring publicly traded companies to report on greenhouse gas emissions and the risks from climate change.

“I’ve been practicing for 15 years and this is by far the most attention an SEC rule has seen from a political or news standpoint, or a comments standpoint,” he said.

Even if the SEC follows the lead of the ISSB and gradually phases in its rules, U.S. companies need to prepare for disclosing much more detailed information on climate risk, Darryl added.  

“Regardless of the final details of the proposed rule, you will see increased climate disclosure in SEC reports,” he said. “There already is a very robust framework in terms of what information is material, and a number of investors have been very clear that climate-related risk disclosure is material information in their view.”