Energy companies are squarely in the crosshairs of Biden’s sweeping climate disclosure proposal, and the reams of information they must provide is intended to increase pressure to decarbonize their businesses. Here, attorneys share with Law360 four significant takeaways for energy companies from the SEC’s proposal.

Companies will face higher compliance costs and new disclosure challenges stemming from a new proposal requiring firms to provide estimates of their greenhouse gas emissions and “risks” to their businesses from climate change, finance chiefs said.

Many companies provide details on climate risks when disclosing information they deem material, but investors often find it hard to make comparisons. The Securities and Exchange Commission on Monday sought to remedy that by compelling companies to report greenhouse-gas emissions from their own operations as well as from the energy they consume, and to obtain independent certification of their estimates. The proposal will be open for public feedback for at least 60 days, after which the SEC will start crafting a final rule.

Wall Street Journal Article HERE.

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