SEC rethinking climate disclosure proposal: report

The Securities and Exchange Commission is considering “softening” its ICBA-opposed proposed rule to institute climate-related investor disclosures, according to The Wall Street Journal.

Threshold Adjustment: Citing unnamed sources, the Journal reported that the SEC is considering raising the threshold at which companies must report climate costs following pushback from investors, companies, and lawmakers.

ICBA Opposition: ICBA strongly opposes the SEC proposal, noting in its comment letter and in a recent American Banker op-ed that it contains no exemption for community banks and threatens to impose unprecedented costs and potential liabilities on local institutions.

Background: The SEC proposal would require registrants to include certain climate-related disclosures in their registration statements and periodic reports about governance of climate-related risks, relevant risk management processes, direct and indirect greenhouse gas emissions, and more.