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Climate-Related Risks: SEC Has Taken Steps to Clarify Disclosure Requirements

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Report Type Reports and Testimonies
Report Date Feb. 20, 2018
Release Date March 22, 2018
Report No. GAO-18-188
Summary:

Public companies are required to disclose material risks that could affect their finances or operations in their Securities and Exchange Commission filings. These may include climate-related risks—for example, a need to improve facilities to meet emission requirements.

We reviewed steps SEC has taken to clarify companies' climate-related disclosure requirements. Industry representatives told us that they consider the requirements to be clear and adequate. At the same time, some investor groups expressed a need for more information. SEC has no current plans to modify its climate-related disclosure requirements.

 

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