SEC Chair Gary Gensler said in July he has asked agency staff to submit a proposal for mandatory climate risk disclosures for agency consideration by the end of 2021. Such reports may be required in an expanded Form 10-K and describe a company’s direct and indirect carbon emissions, including those by suppliers and partners in its “value chain.”
Companies may need to report on metrics such as greenhouse gas emissions, financial impacts of climate change and progress towards climate-related goals, Gensler said, adding that he aims to ensure investor access to “consistent, comparable, and decision-useful disclosures.”
