On March 6, 2024, by a party-line vote of 3-2, the US Securities and Exchange Commission (SEC) adopted final rules (entitled “The Enhancement and Standardization of Climate-Related Disclosures for Investors”) requiring most public companies to disclose climate-related information in registration statements and annual reports filed with the SEC. The SEC first proposed climate disclosure rules in March 2022, and the proposal has been a source of much debate and controversy, generating over 24,000 comment letters, more than any regulation in the history of the SEC.
Continue Reading SEC Adopts Long-Awaited Final Climate Disclosure Rules

On October 7, 2023 California Governor Gavin Newsom signed two landmark climate disclosure laws aimed at making major companies publicly disclose their greenhouse gas emissions and report on their climate-related financial risks.
Continue Reading First-in-the-Nation Climate Disclosure Bills Become Law In California

Last week, the Securities and Exchange Commission revealed its much-anticipated proposal to require that public companies disclose climate-related information. The proposed rule is significant because, for the first time, the SEC would mandate that companies (including foreign companies) publicly traded in the US disclose climate-related risk and greenhouse gas emissions information beyond the information currently required by existing SEC rules applicable to registration statements and annual reports.
Continue Reading The SEC Proposes a Mandatory Climate Disclosure Regime for Public Companies

On September 22, 2021, the Division of Corporation Finance of the Securities and Exchange Commission issued a sample comment letter to highlight its increased focus on climate change-related disclosures or the absence of such disclosures in issuer filings under the Securities Act and the Exchange Act.
Continue Reading SEC Issues Sample Climate Change Comment Letter

In a recent post, we discussed the various risks, trending issues, and emerging concerns arising from environmental, social, and corporate governance factors. As noted previously, neglecting ESG considerations can result in a number of risks to a company, including risks associated with the reputational, financial, and legal impacts of handling ESG issues poorly. We also observed how managing ESG issues well can enhance corporate value and performance, and create competitive advantages for companies. Given these emerging risks and opportunities, it is perhaps unsurprising that ESG has begun to play a larger role in the M&A context in recent years.
Continue Reading ESG Considerations in M&A

Environmental, social and corporate governance – like climate change and environmental justice – has been a hot topic of discussion in the early days of the Biden administration. Illustrating the interconnectedness of the trending issues, climate change and environmental justice are pillars of ESG.
Continue Reading Environmental, Social and Corporate Governance: What are the Risks, Really?