Matthew Franker spoke with Law360 about the SEC’s impending new reporting guidelines for companies related to climate-related risks. Matthew observed that “the memo may reflect a growing view within the agency that companies are indeed omitting crucial material information from their official SEC filings”. He said, “I think there is at least that perception, and maybe there's some reality behind that.”
Matthew laid out an approach for companies regarding their disclosures going forward. He suggested, “companies should really be thinking comprehensively about climate-related issues, including how they're affecting their business, now and in the future. That includes factoring in potential future regulation or legislation in this area.”
More in the immediate future, Matthew suggested that “public companies and their advisers "drill down" on their disclosure controls and procedures to ensure they're ready to incorporate climate-related information in SEC filings.” He explained business should make sure “the disclosures are comprehensive and taking into account various viewpoints of the point people within the company who are working on these issues” by “reassessing their materiality and decisions based on the comments from the SEC.”
He concluded, "This will allow them to evaluate whether they're thinking about materiality through the same lens as the SEC."
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