SEC Delays Release of Final Rule on Climate Risk and Carbon Emissions Disclosures Amid Criticism

• The SEC (Securities and Exchange Commission) has postponed the release of a final rule on climate risk and carbon emissions disclosures.
• Received more than 14,000 comment letters on its draft proposal.
• Would have required companies to disclose their strategy towards climate risk, data on their greenhouse gas emissions.
  
• Critics, including lawmakers, state attorneys general, and others, have said that the rule would impose excessive compliance costs on companies and exceed the SEC's authority.

SEC Proposes Tougher Cybersecurity Disclosure Rules, Requiring Breaches to be Reported Within Four Days

• SEC released a draft rule on cybersecurity risk governance in March, which aims to establish tougher and more detailed rules for cybersecurity disclosure.
• Would require companies to provide deeper reports on cyberattacks and file regular reports on cyber risk management, governance, and strategy.
• Companies would also need to report any breaches within four days.
• The Biden administration is also working towards strengthening cybersecurity in both the public and private sectors, implementing a "zero trust" approach

DoD, GSA, and NASA Propose New Regulations for Major Federal Suppliers to Disclose Greenhouse Gas Emissions and Set Science-Based Reduct

• The Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA) are proposing to revise the Federal Acquisition Regulation (FAR) to implement Executive Order 14030, Climate-Related Financial Risk.
• Would require major Federal suppliers to publicly disclose their greenhouse gas emissions and climate-related financial risk and set science-based reduction targets.
• Goal is to mitigate the risks of climate change and enhance U.S. competitiveness and economic growth.
• The rule would leverage existing standards and systems, such as the Task Force on Climate-related Financial Disclosures (TCFD) Recommendations, the CDP reporting system, and Science Based Targets Initiative (SBTi) criteria, to promote attention to reduced carbon emissions among contractors.

Evolution of the Sustainability Accounting Standards Board
(SASB) Standards

• The International Standards-Setting Board (ISSB) recently made several decisions regarding the role and evolution of the Sustainability Accounting Standards Board (SASB) Standards in response to market feedback received on the draft IFRS Sustainability Disclosure Standards.
• The ISSB confirmed that industry-specific disclosures are required and, in the absence of specific IFRS Sustainability Disclosure Standards, companies must consider the SASB Standards to identify sustainability-related risks, opportunities, and appropriate metrics.
• The ISSB will enhance the international applicability of the SASB Standards and continue SASB Standards projects handed over by the VRF as foundational work in 2023.
• They will develop drafts of the required exposure drafts of amendments to the SASB Standards and, after considering the stakeholder feedback, drafts of the final amendments.