Manatt Land Use Partner David Smith wrote an article for Law360 on new greenhouse gas emission and climate-related risk disclosures that will soon become required in the United States that will affect the financial services entities that led the charge on these mandates.
The U.S. Securities and Exchange Commission introduced a proposed rule in 2022 that would require publicly traded companies to disclose GHG emissions and climate-related risks, but after the rule received a high number of public comments with strong concern, the SEC has not committed to a schedule for adopting it. California implemented sweeping and unprecedented compliance and disclosure mandates that apply to thousands of public and private companies across the globe when Governor Gavin Newsom signed Senate Bills 252 and 261 into law.
In his article, Smith discussed how the new regulations will affect financial services firms, such as major investment funds and large banks, that were among the most vocal asking for verifiable and transparent emissions disclosures. He warns companies that believe compliance is inapplicable or far off may be shortsighted or mistaken and should start formulating a compliance plan.
Law360 subscribers can read the full article here.