SEC Extends Comment Period on Proposed Climate Disclosure Rules

The Securities and Exchange Commission (SEC) has extended the public comment period for its proposed rules on The Enhancement and Standardization of Climate-Related Disclosures for Investors until June 17, 2022. In a press release on May 9th, the SEC explained that the extension follows comments requesting additional time to review the proposal.

The proposed rules would require public companies to disclose specified climate-related information in their registration statements and annual reports, including greenhouse gas (GHG) emissions. Companies would be required to disclose information about direct GHG emissions (Scope 1) and indirect GHG emissions from purchased electricity or other forms of energy (Scope 2). Small entities would be exempt from rules requiring additional disclosure of GHG emissions from upstream and downstream activities in a company’s value chain (Scope 3), but not from the proposed Scope 1 or Scope 2 emissions disclosure requirements.

The comment period has been extended and will now close on June 17, 2022.