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Climate change risk assessment The SEC means business when it comes to disclosing climate risk - are you ready? On January 27, 2010, SEC Chairman Mary Schapiro announced interpretive guidance on existing SEC disclosure requirements under Regulation S-K as they apply to business and legal developments relating to the issue of climate change. Simply put, based on existing securities regulations, your company must immediately assess and possibly disclose to investors at least four categories of risk: impact of legislation and regulation, impact of international accords, indirect consequences of regulation or business trends, and the physical impacts of climate change. The SEC’s interpretative guidance, which does not create new legal requirements nor modify existing ones, clarifies how material risks from climate change that may impact a company’s business description, legal proceedings, and management discussion and analysis, must be disclosed. These disclosures must be made if they would influence a reasonable investor’s financial decisions, which is the SEC’s definition of materiality and is consistent with GAAP and interpretation by the courts. Climate change is non-linear, disruptive, and has wide ranging impacts on companies, their supply chains, and their markets. Altanova has the expertise to assist you to untangle the complexity and ramifications, assess the risks, and prepare both for adaptation and disclosure. Contact us now for a preliminary assessment that will provide you with an overview of the specific risks to your company, and the strategic basis for further analysis and mandatory disclosure investors. Contact us for a Climate Disclosure Risk Assessment Link to the SEC’s 1/27/2010 press release.
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