Shearman & Sterling LLP
Issue link: https://digital.shearman.com/i/1494417
New Environmental/Climate-Change Disclosures Expected in 2023 Financial Statements – The Basic Requirements 45 Regulation S-X • Certain climate change-related financial statement metrics and disclosures to be included in notes to financial statements included in periodic reports and registration statements • Not limited by materiality • Line-item specificity, including expenditures relating to mitigation and transition activities Regulation S-K • Proposed new disclosure section requiring certain climate change information: I. risks to registrant's business or consolidated financial statements II. impacts on a registrant's strategy, business model and outlook III. risk management practices IV. Internal carbon prices or climate change-related targets or goals; and V. Three separate scopes of greenhouse gas emissions metrics • In acquisition context, both proposals would require acquirors to evaluate how their proposed acquisition would impact the disclosures of the post-acquisition combined company