On March 21, 2022, in a landmark proposal, the US Securities and Exchange Commission (“SEC”) proposed rules
that would require registrants to disclose extensive climate-related information in their SEC filings. Specifically –
- Climate-related risks that are reasonably likely to have a material impact on a public company’s business, results
of operations, or financial condition; - Climate-related financial metrics to be included in a company’s audited financial statements by way of a footnote;
and - Greenhouse gas (“GHG”) emissions associated with a registrant that includes, an attestation report by a GHG
emissions attestation provider
Given the critically of this subject, this is need of the hour. Pandemic has propelled the importance of climate change
and the gravity of climate crisis which go beyond an organization’s own footprint. Climate change is set to become a
key risk for businesses.
Coverage and quality of climate-related disclosures in India, however, remain below that of global averages. More
Indian companies are auditing their carbon footprint, but the number is still woefully small. Despite ongoing progress,
companies are still struggling to come to grips with climate risk disclosures.
Believe that its time, Government / Regulators / Accounting bodies / Investors / other stakeholders push for this
