Even though incoming SEC Chairman Gensler has yet to be confirmed (as of this writing), the Commission has launched a multi-pronged focus on climate change disclosure. The key actions to date are:
- On February 1, the SEC announced the appointment of a Senior Policy Advisor for Climate and ESG. The occupant of this new position “will advise…on environmental, social, and governance matters and advance…new initiatives across [the SEC’s] offices and divisions."
- On February 24, Acting Chair Allison Herren Lee directed the Division of Corporation Finance to enhance its focus on climate-related disclosure in public company filings. Among other things, the Division will “assess compliance with disclosure obligations…, engage with public companies…, and absorb critical lessons on how the market is managing climate-related risks."
- On March 3, the Division of Examinations announced its 2021 priorities, including a greater focus on climate-related risks.
- On March 4, the SEC announced the creation of a Climate and ESG Task Force in the Division of Enforcement “to proactively identify ESG-related misconduct,” including disclosure as well as funds’ ESG strategies.
In addition, it is widely expected that the SEC – possibly at the behest of Congress – will enact regulations mandating more robust disclosure of companies’ vulnerability to and preparations for climate change. To be continued….
Please direct any questions or observations to Gunster securities law and corporate governance practice leader Bob Lamm.
YES! PLEASE SIGN ME UP TO RECEIVE EMAIL ALERTS FROM OTHER GUNSTER PRACTICE AREAS.
This publication is for general information only. It is not legal advice, and legal counsel should be contacted before any action is taken that might be influenced by this publication.
