the implications of the identified climate-related risks have been integrated into the registrant's. business model or strategy, including how resources are being used to mitigate climate-related ...
disclosure about the resilience of a company's strategy to climate-related risks, and as such,. using the concept in the final rules will provide consistency for those registrants that have been ...
registrant's management of its identified climate-related risks and help them assess the resiliency. of a registrant's strategy in a potential transition to a lower carbon economy.468 Some. ...
The Commission proposed to require a registrant to describe the resilience of its business. strategy in light of potential future changes in climate-related risks.534 In connection with this ...
Whether the impacts of the climate-related risks described in response to Item 1502(b). have been integrated into the registrant's business model or strategy, including whether. ...
provision in the rule proposal requiring a registrant to describe the resilience of its business. strategy in light of potential future changes in climate-related risks. ...
improve investors'assessment of the appropriateness of a registrant's strategy and business. model in light of foreseeable climate-related risks ...
future climate scenarios, and how climate-related risks may impact a registrant's business strategy, results. ...
impacts on its strategy, business model, and outlook of those climate-related risks that it must ...
topimpacts on its strategy, business model, and outlook of those climate-related risks that it must
topthe implications of the identified climate-related risks have been integrated into the registrant's. business model or strategy, including how resources are being used to mitigate climate-related
topWhether the impacts of the climate-related risks described in response to Item 1502(b). have been integrated into the registrant's business model or strategy, including whether.
topdisclosure about the resilience of a company's strategy to climate-related risks, and as such,. using the concept in the final rules will provide consistency for those registrants that have been
topregistrant's management of its identified climate-related risks and help them assess the resiliency. of a registrant's strategy in a potential transition to a lower carbon economy.468 Some.
topThe Commission proposed to require a registrant to describe the resilience of its business. strategy in light of potential future changes in climate-related risks.534 In connection with this
topfuture climate scenarios, and how climate-related risks may impact a registrant's business strategy, results.
topprovision in the rule proposal requiring a registrant to describe the resilience of its business. strategy in light of potential future changes in climate-related risks.
topimprove investors'assessment of the appropriateness of a registrant's strategy and business. model in light of foreseeable climate-related risks
topabout the actual and potential impacts of a registrant's identified climate-related risks is central
topregistrant's management of its identified climate-related risks and help them assess the resiliency. of a registrant's strategy in a potential transition to a lower carbon economy.468 Some.
topThe Commission proposed to require a registrant to describe the resilience of its business. strategy in light of potential future changes in climate-related risks.534 In connection with this
toprather, when material, to provide investors with the information they need to evaluate the. climate-related risks faced by the registrant and their potential impacts on the registrant's.
topanalysis means a process for identifying and assessing a potential range of outcomes of various possible. future climate scenarios, and how climate-related risks may impact a registrant's business strategy, results
topprovision in the rule proposal requiring a registrant to describe the resilience of its business. strategy in light of potential future changes in climate-related risks.
top... identified climate-related risks have been integrated into the registrant's. business model or strategy, including how resources are being used to mitigate climate-related.
topand how resources are being used to mitigate climate-related risks; and.
topabout the actual and potential impacts of a registrant's identified climate-related risks is central. to helping investors do the following: understand the extent to which a registrant's business
topproposed requirements were intended to help investors understand how a registrant intends to. address identified climate-related risks and any transition to a lower carbon economy while
toprather, when material, to provide investors with the information they need to evaluate the. climate-related risks faced by the registrant and their potential impacts on the registrant's
topimprove investors'assessment of the appropriateness of a registrant's strategy and business
top... resilience of a company's strategy to climate-related risks, and as such,. using the concept in the final rules will provide consistency for those registrants that have been.
topmitigate or adapt to climate-related risks; and expenditure for research and development.. Registrants are also required to discuss whether and how the registrant considers these impacts as
topconstitute a material component of a registrant's plan to achieve its climate-related targets or. goals.442 Given this targets and goals disclosure requirement, explicitly requiring disclosure
topwhich a registrant has taken actions to mitigate or adapt to a material climate-related risk.400.
topmitigation or adaptation activities will more closely align the disclosure requirement with how. the registrant actually evaluates a material climate-related risk.
topresults that it is not likely to be materially impacted by a climate-related risk, no disclosure about its use of.
topAs one commenter noted, requiring the disclosure of material. expenditures that are directly linked to a registrant's climate-related goals as part of a registrant's
topWe decline, however, to follow the recommendation of one commenter to require the disclosure. of how a registrant intends to achieve any climate-related opportunities that are a part of its
top543 One such commenter stated that requiring scenario analysis disclosure. is essential if a registrant's disclosure of material climate-related risks is to be decision-useful...
top... decline, however, to follow the recommendation of one commenter to require the disclosure. of how a registrant intends to achieve any climate-related opportunities that are a part of its.
topfurther stated that the proposed disclosure items would help investors understand the extent to. which a registrant has taken actions to mitigate or adapt to a material climate-related risk.400.
topThe final rule provision (Item 1502(b)) will require a registrant to describe the actual and. potential material impacts of any climate-related risk identified in response to Item 1502(a) on
topregistrant to describe the actual and potential impacts of any identified climate-related risk in.
topis reasonably likely to have a material impact on its business, results of operations, or financial.
topbusiness, results of operations, or financial condition, and if, based on the results of such. scenario analysis, the registrant determines that a climate-related risk is reasonably likely to have
topand manage a material climate-related risk, investors need to understand how it conducted that. analysis in order to evaluate the registrant's conclusions regarding material impacts on its
topresponse to the impacts and the resiliency of the registrant's strategy to climate-related factors;. and assess whether a registrant's securities have been correctly valued.395 One commenter
topinformation is also central to evaluating management's response to the impacts and the resiliency. of the registrant's strategy to climate-related factors as it pertains to the registrant's results of
topregistrant's management of its identified climate-related risks and help them assess the resiliency. of a registrant's strategy in a potential transition to a lower carbon economy.468 Some
topThe Commission proposed to require a registrant to describe the actual and potential. impacts on its strategy, business model, and outlook of those climate-related risks that it must.
topthe implications of the identified climate-related risks have been integrated into the registrant's. business model or strategy, including how resources are being used to mitigate climate-related
topWhether the impacts of the climate-related risks described in response to Item 1502(b). have been integrated into the registrant's business model or strategy, including whether.
topimprove investors'assessment of the appropriateness of a registrant's strategy and business. model in light of foreseeable climate-related risks.
topThe Commission proposed to require a registrant to describe the actual and potential. impacts on its strategy, business model, and outlook of those climate-related risks that it must
toprather, when material, to provide investors with the information they need to evaluate the. climate-related risks faced by the registrant and their potential impacts on the registrant's
topabout the actual and potential impacts of a registrant's identified climate-related risks is central.
toprather, when material, to provide investors with the information they need to evaluate the. climate-related risks faced by the registrant and their potential impacts on the registrant's
topproprietary information, though they may make the disclosures less comparable.. Overall, by focusing on climate-related risks that are material to the registrant's business,.
top394 Commenters indicated that detailed information. about the actual and potential impacts of a registrant's identified climate-related risks is central
topproprietary information, though they may make the disclosures less comparable.. Overall, by focusing on climate-related risks that are material to the registrant's business,
top... identified climate-related risks, and are consistent with the types of impacts that a. registrant may face and that are recommended for disclosure by the TCFD.399 Commenters.
topcommenters specifically supported requiring disclosure, as applicable, of a registrant's plan to. mitigate or adapt to identified physical risks, as proposed, and further stated that there are no
topconcerning the role that the use of carbon offsets or RECs has played in a registrant's climaterelated strategy. Under the final rules, as part of its targets and goals disclosure,
topconcerning the role that the use of carbon offsets or RECs has played in a registrant's climaterelated strategy. Under the final rules, as part of its targets and goals disclosure,
topconcerning the role that the use of carbon offsets or RECs has played in a registrant's climaterelated strategy. Under the final rules, as part of its targets and goals disclosure,
topdisclosure about the resilience of a company's strategy to climate-related risks, and as such,. using the concept in the final rules will provide consistency for those registrants that have been.
topabout the actual and potential impacts of a registrant's identified climate-related risks is central. to helping investors do the following: understand the extent to which a registrant's business
topdisclosure about the resilience of a company's strategy to climate-related risks, and as such,. using the concept in the final rules will provide consistency for those registrants that have been
toprespect to the particular practices of a registrant in order to make informed investment and voting.
topshould a carbon tax be put into effect; and to guide capital investment decisions.608 Information. about a registrant's use of internal carbon pricing will help investors evaluate how a registrant is
topabout the registrant's use of internal carbon pricing to inform their investment and voting.
topSuch disclosures will directly benefit investors who use this. information to evaluate the financial prospects of the firms in which they are looking to.
topmost likely and significant impacts, which they asserted would provide more useful information. for investors and reduce a registrant's compliance burden.420 Similarly, some commenters.
topshould a carbon tax be put into effect; and to guide capital investment decisions.608 Information. about a registrant's use of internal carbon pricing will help investors evaluate how a registrant is
topand manage a material climate-related risk, investors need to understand how it conducted that. analysis in order to evaluate the registrant's conclusions regarding material impacts on its.
topThis provision will provide an important. metric to help investors assess a registrant's climate risk management and the financial impact of.
topsignificantly.2793 As such, the final rules will inform investors about whether a registrant is using. scenario analysis to manage a material climate risk, and for those investors who view scenario.
topof scenario analysis reflected an expected material impact on the registrant's business strategy,. financial planning, and capital raising.549 Still other commenters recommended that the.
tophave been integrated into the registrant's business model or strategy, including whether. and how resources are being used to mitigate climate-related risks; and.
topthe impact of climate-related risks on its business, results of operations, or financial condition,. and if, based on the results of scenario analysis, a registrant determines that a climate-related...
topdiscussion of whether and how any of its identified climate-related risks have affected or are. reasonably likely to affect the registrant's consolidated financial statements.392 The proposed
topreferenced in proposed Article 14 of Regulation S-X that demonstrate that the identified climaterelated risks have had a material impact on the registrant's reported financial condition or
topthe impact of climate-related risks on its business, results of operations, or financial condition,.
topSuch disclosures will directly benefit investors who use this. information to evaluate the financial prospects of the firms in which they are looking to
topmanagement's views of climate-related risks and opportunities.408. Several commenters stated that, instead of requiring the disclosure of financial metrics.
topmaterial impacts of its climate-related risks into its business strategy, financial planning, and. capital allocation.
topregistrant when determining its material climate-related risks).385. When proposing these disclosure requirements, the Commission stated that information.
toppreviously used in Regulation S-K.444 Moreover, the TCFD uses that term in connection with. disclosure about the resilience of a company's strategy to climate-related risks, and as such,
toppreviously used in Regulation S-K.444 Moreover, the TCFD uses that term in connection with. disclosure about the resilience of a company's strategy to climate-related risks, and as such,
toppreviously used in Regulation S-K.444 Moreover, the TCFD uses that term in connection with. disclosure about the resilience of a company's strategy to climate-related risks, and as such,.
top... or targets and goals disclosure under Regulation S-K,453 instead of requiring the. disclosure of climate-related financial impacts on line items under Regulation S-X, as proposed,.
topstrategy or targets and goals disclosure under Regulation S-K,453 instead of requiring the. disclosure of climate-related financial impacts on line items under Regulation S-X, as proposed,
topIn addition, in a change from the proposal, the amendments to Regulation S-X do. not require the disclosure of expenditures to mitigate the risks of severe weather events and other natural
topIn addition, in a change from the proposal, the amendments to Regulation S-X do. not require the disclosure of expenditures to mitigate the risks of severe weather events and other natural
topOne commenter recommended adopting a climate disclosure framework, similar to. MD&A, that focuses on providing investors with material climate-related information that.
topannounced climate-related strategy or initiative.577 Conditioning the disclosure requirement in
topexpressed concern that the proposed disclosure requirement would result in disclosure of a large. volume of information that is immaterial to investors and burdensome for registrants to
topprescriptive and could result in a volume of information that could be confusing for investors,. 437. we have streamlined the Item 1502(c) disclosure requirement
topannounced climate-related strategy or initiative.577 Conditioning the disclosure requirement in. this way could deprive investors of needed information solely because the registrant has...
top... that the proposed disclosure requirement would result in disclosure of a large. volume of information that is immaterial to investors and burdensome for registrants to.
topexposure,561 and investors have increasingly sought information from registrants about their use.
topmandating that all or only these impacts be disclosed, the final rule will help elicit more. meaningful and relevant disclosure without overburdening registrants or investors with the. presentation of irrelevant information
topmandating that all or only these impacts be disclosed, the final rule will help elicit more. meaningful and relevant disclosure without overburdening registrants or investors with the
top... requirements set forth in Item 1508 will facilitate investors'ability to find and analyze. material expenditures disclosure regardless of whether provided in tabular or narrative form.
topgenerally supported some form of climate disclosure while recommending that the Commission. make the final rules more principles-based so that registrants could better tailor their disclosures
topSome commenters recommended that the Commission require all registrants to provide. scenario analysis disclosure in their climate risk reporting, regardless of whether they otherwise.
topSome commenters recommended that the Commission require all registrants to provide. scenario analysis disclosure in their climate risk reporting, regardless of whether they otherwise.
topgenerally supported some form of climate disclosure while recommending that the Commission. make the final rules more principles-based so that registrants could better tailor their disclosures
topmandating that all or only these impacts be disclosed, the final rule will help elicit more. meaningful and relevant disclosure without overburdening registrants or investors with the.
topregistrant when determining its material climate-related risks).385. When proposing these disclosure requirements, the Commission stated that information
topabout how climate-related risks have impacted or are likely to impact a registrant's strategy,.
topregistrant when determining its material climate-related risks).385. When proposing these disclosure requirements, the Commission stated that information
topabout how climate-related risks have impacted or are likely to impact a registrant's strategy,
topannounced climate-related strategy or initiative.577 Conditioning the disclosure requirement in. this way could deprive investors of needed information solely because the registrant has not yet
topwould then assist investors in their assessment of a registrant's climate risk management.405. One commenter recommended adopting a climate disclosure framework, similar to
toppurpose of making investment decisions.485 One commenter recommended that the Commission. require, rather than permit, the disclosure of how a registrant plans to achieve any climate-related
toppurpose of making investment decisions.485 One commenter recommended that the Commission. require, rather than permit, the disclosure of how a registrant plans to achieve any climate-related
topcapitalized and expensed, made during the fiscal year for the purpose of climate-related risk. mitigation or adaptation. As one commenter noted, requiring the disclosure of material
topOne commenter recommended adopting a climate disclosure framework, similar to. MD&A, that focuses on providing investors with material climate-related information that.
topOne commenter recommended adopting a climate disclosure framework, similar to. MD&A, that focuses on providing investors with material climate-related information that.
topwould then assist investors in their assessment of a registrant's climate risk management.405. One commenter recommended adopting a climate disclosure framework, similar to
topsufficiently for climate risk.546. One commenter stated that the proposed scenario analysis disclosure requirement struck
topfor investors.454 Although this commenter recommended that such expenditures disclosure be. presented in tabular format, the final rule provision does not specify a particular format
topmaterial impacts of its climate-related risks into its business strategy, financial planning, and. capital allocation.. In addition, to further streamline the disclosure and reduce some of the redundancy in the
topwhich may help alleviate concerns about potential liability exposure for attribution decisions.. 460. Requiring the disclosure of material impacts on financial estimates and assumptions that,
topevaluate a registrant's management of its identified climate-related risks and assess the potential. impacts of a registrant's strategy to achieve its short or long-term climate-related targets or
topindicated that investors need more detailed information about the effects of climate-related risks.
top... noted by several commenters, this provision will help investors assess a registrant's resiliency. to impacts of climate-related risks, by providing information about how management considers.
topthat information regarding a registrant's transition plan is important to help investors evaluate a
topprescribe any particular tools, strategies, or practices with respect to climate-related risks but. rather, when material, to provide investors with the information they need to evaluate the.
topprescribe any particular tools, strategies, or practices with respect to climate-related risks but. rather, when material, to provide investors with the information they need to evaluate the
topAs noted by several commenters, this provision will help investors assess a registrant's resiliency. to impacts of climate-related risks, by providing information about how management considers
topother purposes: to help identify climate-related risks and opportunities; as an incentive to drive. energy efficiencies to reduce costs; to quantify the potential costs the company would incur.
topmisinterpreted the rule proposal as requiring the disclosure of actual or potential impacts of. climate-related risks, regardless of their materiality.426 We have, therefore, added an...
topThe final rule provision largely lists the same types of potential material impacts of. climate-related risks as under the rule proposal.
topother purposes: to help identify climate-related risks and opportunities; as an incentive to drive. energy efficiencies to reduce costs; to quantify the potential costs the company would incur
topthe implications of the identified climate-related risks have been integrated into the registrant's. business model or strategy, including how resources are being used to mitigate climate-related
topWhether the impacts of the climate-related risks described in response to Item 1502(b). have been integrated into the registrant's business model or strategy, including whether.
toppart of its consideration of material climate-related risks, a registrant will be able to select the. climate scenario model or models that it believes best fits its particular industry or business, or
topimprove investors'assessment of the appropriateness of a registrant's strategy and business. model in light of foreseeable climate-related risks.
top2795. If a registrant's use of an internal carbon price is material to how it evaluates and
toppart of its consideration of material climate-related risks, a registrant will be able to select the. climate scenario model or models that it believes best fits its particular industry or business, or.
tophas contributed to the registrant's overall evaluation and planning regarding climate-related. risk.614 Increased transparency about internal carbon pricing by registrants that use an internal
topAs noted in the Proposing Release, registrants may adopt transition plans to mitigate or. adapt to climate-related risks as an important part of their climate-related risk management.
topAs noted in the Proposing Release, registrants may adopt transition plans to mitigate or. adapt to climate-related risks as an important part of their climate-related risk management
topAs noted in the Proposing Release, registrants may adopt transition plans to mitigate or. adapt to climate-related risks as an important part of their climate-related risk management
tophas contributed to the registrant's overall evaluation and planning regarding climate-related. risk.614 Increased transparency about internal carbon pricing by registrants that use an internal
topwhich a registrant has taken actions to mitigate or adapt to a material climate-related risk.400. One commenter, however, recommended that the final rules should clarify that the list of impacts
topFor registrants that use more than one internal carbon price to. evaluate and manage a material climate-related risk, these disclosures apply to each internal
topMD&A, that focuses on providing investors with material climate-related information that. management uses to make strategic decisions while allowing registrants to tailor the disclosure to.
toptransition plan's goals and to enable investors to make or alter their investment decisions based. on current climate-related information.488 One of these commenters stated that "[c]ompanies
topMoreover, requiring this information on an annual basis will allow investors to take into account. current climate-related information in their investment and voting decisions more consistently.
topdisclose how it plans to achieve any climate-related opportunities.484 Commenters stated that. information about whether and how a registrant intends to achieve climate-related opportunities,
top... registrant's management of its identified climate-related risks and assess the potential. impacts of a registrant's strategy to achieve its short or long-term climate-related targets or.
topimportant forward-looking information to help investors evaluate the resilience of the registrant's. strategy under various climate-related circumstances.560 Scenario analysis has increasingly been
topimportant forward-looking information to help investors evaluate the resilience of the registrant's. strategy under various climate-related circumstances.560 Scenario analysis has increasingly been
topimprove investors'assessment of the appropriateness of a registrant's strategy and business.