The SEC’s Revolutionary New Climate Disclosure Requirements – A Deep Dive Into Governance, Strategy, and Risk Disclosures

In a highly anticipated meeting, on March 6, 2024, the U.S. Securities and Exchange Commission (“SEC”) adopted sweeping new climate-related disclosure requirements. This Briefing, the first of two, focuses on the new governance, strategy, risk, and targets and goals disclosures. Please join expert faculty as they discuss the new disclosure requirements and next steps to prepare for compliance with these new disclosures.

In this Briefing faculty will:

• Discuss the rationale for the SEC’s rule – 2 minutes
• Explain the scope of the rule, including which companies and filings are affected – 2 minutes
• Review the foundations for the proposed rules in the Task Force on Climate-related Financial Disclosures (TCFD) framework – 3 minutes
• Provide an overview of greenhouse gas emissions reporting and financial statement disclosure requirements – 5 minutes
• Explain governance-related disclosures – 10 minutes
  • Board of Directors’ oversight
  • Board considerations for risk evaluation
  • Board considerations for targets and goals
  • Management’s role and process disclosures
• Describe strategy, business model and outlook disclosures – 10 minutes
  • Potential business and financial impacts of climate-related risks
  • Physical risk disclosures
  • Transition risk disclosures
  • Internal carbon price disclosures
• Describe risk management disclosures – 5 minutes
  • Disclosure of processes for identifying, assessing and managing climate-related risks
• Describe targets and goals disclosures– 5 minutes
  • Required disclosures if targets are set
  • Scope of activities included in the target
  • Details of each target
• Discuss the Regulation S-K requirements related to financial condition, estimates, and assumptions– 5 minutes
• Discuss phase-in requirements – 3 minutes
• Recommended action steps for companies to consider – 10 minutes

You may also want to listen to our related One-Hour Briefing focused on the greenhouse gas emissions disclosures and financial reporting requirements in the SEC’s Rule for climate-related disclosures. You can find the briefing here: The SEC’s Revolutionary New Climate Disclosures – New Greenhouse Gas Disclosure, Attestation, and Financial Statement Disclosure Requirements.

Who Should Attend: Accountants and attorneys who deal with SEC reporting and disclosure and related accounting issues, including CFOs, controllers and their staff, internal auditors, partners of public accounting firms and their staff, in-house counsel, and outside attorneys.

Program Level: Update

Prerequisites: None

Advanced Preparation: None

Faculty:

Gary M. Brown

Nelson Mullins Riley & Scarborough LLP

Christina M. Thomas

Kirkland and Ellis LLP