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SEC's ESG Climate Proposal – What You Need to Know

On March 21, 2022, the SEC answered investor and company requests for more standardized guidance on environmental, social, and governance (ESG) issues with a 506-page proposal that focuses on prescriptive climate-related disclosures that would be included in registration statements and SEC filings. This article provides details on the proposal, which would require information about a registrant’s climate-related risks that are reasonably likely to have a material impact on its business, results of operations, or financial condition.