Lok – Fall 2022 – MJEAL
SEC Focus on Climate Change Risk and Disclosure
Kathleen Lok
As environmental concerns continue to research, investors and companies have continued to contend with how to report the impact of climate related risks on their business. Currently, the SEC does not require any specific environmental risk reporting, and instead bases disclosures on materiality.[1] This lack of a standardized framework gives companies much discretion to decide what environmental and climate-related information they choose to report, which is often done through voluntary sustainability reports.[2] A 2022 survey by Deloitte showed that more than two-thirds of public companies with over $500 million in