Scope Of SEC Climate Disclosures Could Hinge On ‘Materiality’ Choices

Even as a final Securities and Exchange Commission (SEC) rule requires public companies to disclose climate-related information in securities filings for the first time, the rule’s effects remain uncertain because most requirements hinge on whether a company’s management deems that the information “material” to a reasonable investor. The March 6 final rule’s heavy reliance on the concept of “materiality” is a major change from the 2022 proposed rule that SEC Chairman Gary Gensler (D) and other commissioners adopted in part...