A One-Year Review of SEC Interpretive Release on Climate Change Disclosures

Abstract

In February, 2010, the Securities and Exchange Commission (SEC) issued Interpretive Release 33-9106 "to provide guidance to public companies regarding… existing disclosure requirements as they apply to climate change matters." In its release, the SEC identified climate change-related issues potentially requiring disclosure under Regulation S-K, including the impact of legislation and regulation, the effect of international accords or treaties, the indirect consequences of regulation, and the physical impacts of climate change. One year later, this paper examines the effect of 33-9106 by exploring the extent to which Fortune 500 firms have disclosed these and other matters related to climate change. The paper also considers whether and what additional apposite regulation or legislation may be necessary to clarify disclosure obligations.

Keywords: SEC, regulation, climate change, materiality, disclosure, 33-9106, interpretive release

JEL Classification: G18, K22