The Securities and Exchange Commission is quickly raising the stakes for global companies. Along with these new regulatory requirements, the risk of enforcement multiply, especially when it comes to corporate disclosure requirements. The risks in these areas will become complex and require a comprehensive system for identifying and escalating issues for consistent review and disclosure decisions.
Climate Change Disclosures
Let’s start with the new climate change disclosure requirements. While the regulations have not been finalized, one thing is for sure — companies will face increased risks and will need to implement robust disclosure controls surrounding climate-related risks, greenhouse gas emissions and related financial regulations. The SEC is planning to implement a comprehensive set of disclosure rules prescribing the information that companies will have to disclose initially and in the future. Every covered company will have to design and embed controls to ensure that issues are identified, escalated and resolved for disclosure purposes.
Under the climate change rules, companies will have to provide quantitative and qualitative disclosures,…
