- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2023-02-03T17:08:00
The Securities and Exchange Commission (SEC) is reportedly considering pulling back on key elements of its climate-related disclosure rule following pushback from investors, companies, and the public.
The SEC is still planning to finalize its sweeping mandate this year requiring public companies issue climate-related disclosures in their financial statements. Those disclosures would attempt to quantify the costs to their business caused by climate-related events like floods, fires, and drought as well the effect of environmental regulations on their bottom line. The regulator is also eyeing public companies disclose greenhouse gas (GHG) emissions their business generates.
Among changes being considered, according to a report from the Wall Street Journal on Friday, is easing of one of the more controversial details of the proposed rule: the bright-line test that if climate-related costs and risks affect more than 1 percent of a line item in a financial report, those costs and risks must be disclosed.
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Hester Peirce of the Securities and Exchange Commission argued materiality-based standards—not environmental, social, and governance standards—best suit investors’ needs during a recent speech.
Companies are working on plans to reduce their carbon emissions. The popularity of environmental credits has grown as a way for companies to meet their emission reduction targets.
Smaller reporting companies should, by default, have delayed compliance dates of at least one year on any new disclosure rule, SEC Commissioner Mark Uyeda said in a recent speech.
Securities and Exchange Commission Chair Gary Gensler will step down from his position as the top U.S. regulator of Wall Street when Donald Trump is sworn in as president on Jan. 20, ending weeks of speculation about his future.
President-elect Donald Trump announced he plans to appoint Cantor Fitzgerald President and CEO Howard Lutnick to lead the U.S. Commerce Department, as the incoming administration is expected to charge import tariffs against friends and foes.
If your business uses leather, rubber, wood, beef, palm oil, soy, or paper, then you may need to comply with the EU Deforestation Directive, a new rule intended to ensure that no goods traded in the EU contribute to global deforestation.
