On September 22, 2021, the Division of Corporation Finance (Division) of the Securities and Exchange Commission (SEC) 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. This sample comment letter follows a recent increase in climate-related comments the Division has issued during the disclosure review process, and many of the sample comments appear to be derived from actual comment letters issued in 2021. The sample is consistent with the SEC’s 2010 Guidance Regarding Disclosure Related to Climate Change, which does not mandate specific, line item climate change-related disclosures, but instead takes a principles-based approach.

Continue Reading SEC Issues Sample Climate Change Comment Letter

On Monday, the State of California launched a new group out of Governor Newsom’s office – the Climate-Related Risk Disclosure Advisory Group just as CERES (Coalition for Environmentally Responsible Economies), a non-profit organization that has been a significant voice over the past decade on climate and sustainability economic issues, issued a report entitled, Turning Up the Heat, The need for urgent action by U.S. financial regulators in addressing climate risk.

Continue Reading Actions on Climate Change Disclosure in California and New Report Indicate Spring May Be In Like a Lion and Out Like One Too!

Environmental, social and corporate governance (ESG) – 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?

As the Biden Administration settles in and begins to appoint its designees to key executive and administrative agencies, a series of policy objectives are coming into focus.  Chief among them is expanded attention and regulation in the ESG space regarding environmental, social and governance issues at American businesses. In this post, we survey the expected direction of these initiatives at, for example, the SEC, Department of Labor, and EPA.

Continue Reading A Preview of ESG Regulation under the Biden Administration