US Disclosure Considerations relating to Global Climate Change
Supporting Your Business
On 2 February 2010, the US Securities and Exchange Commission published an interpretive release to provide companies with guidance on existing SEC disclosure requirements as they apply to business and legal developments relating to global climate change.
While the SEC's release stresses that the guidance is not intended to create new legal requirements or modify existing rules relating to disclosure, it appears probable that scrutiny by the SEC of disclosure (or lack of disclosure) relating to the impact of climate change will increase in the future.
While the SEC's disclosure rules do not technically apply to private placements under Rule 144A, the rules are considered in preparing disclosure for such transactions.
The attached
client alert provides a brief overview of the SEC's interpretive release and discusses other recent developments relating to climate change that may impact disclosure and corporate governance practices. The Alert also discusses a number of practical considerations for developing and implementing appropriate climate change disclosure practices.