recommended to the SEC that manager-level informa- tion be made available to each issuer on a confidential basis once certain thresholds have been reached. According to the latest version of the SEC Regula-
tory Agenda, a Final Rule is expected in the second quarter of 2023.
SEC Proposed Rule on Climate Change Disclosures In March 2022, the SEC released a rule proposal to mandate certain climate-related disclosures by public companies. Tis rule proposal would require companies to
disclose significant information about their internal processes to evaluate and address climate change risks, impacts, and opportunities. The proposed rule would also require the disclosure of certain greenhouse gas emissions by each public company, regardless of materiality. In its comment letter on this rulemaking, NIRI
expressed concern about the overly prescriptive nature of this proposed rule and urged the SEC to employ a more flexible, principles-based approach to regulation in this area, as it did when it issued climate guidance in 2013. NIRI noted that the “one-size-fits-all” disclosure regime the SEC proposes also overlooks the fact that
ni ri .org/ irupdate
climate change risks and impacts differ significantly among public companies and depend largely on their business or industry sector. Additionally, NIRI advocated that SEC regula-
tion should treat climate change risks and impacts in the same manner as other risks and impacts fac- ing public companies, and not by having the SEC establish new standards for materiality and GAAP accounting principles. Te NIRI Advocacy Committee also advocated
for these modifications in a meeting with the SEC staff in December 2022. According to the latest version of the SEC Regula-
tory Agenda, a Final Rule is expected in the second quarter of 2023.
Conclusion Tese six legislative and regulatory projects are just the starting point for 2023. Other legislative and regulatory proposals of interest to NIRI members are sure to surface as the year unfolds. You can keep track of these issues on the NIRI website and feel free to email me with comments, questions and feedback. It should be an interesting and active year! IR
Niels Holch is Vice President, Public Policy and Advocacy at NIRI;
nholch@holcherickson.com
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