WASHINGTON — The US Securities and Exchange Commission on March 21 proposed rule changes that would require registrants to include climate-related disclosures in their registration statements and periodic reports.

The rule would have a significant focus on greenhouse gas (GHG) emissions. A registrant would be required to disclose information about direct GHG emissions (Scope 1) and indirect GHG emissions from purchased electricity or other forms of energy (Scope 2). A registrant would be required to disclose GHG emissions from upstream and downstream activities in its value chain (Scope 3) if material and if the registrant has set a GHG emissions goal that includes Scope 3 GHG emissions.

 “I am pleased to support today’s proposal because, if adopted, it would provide investors with consistent, comparable and decision-useful information for making their investment decisions, and it would provide consistent and clear reporting obligations for issuers,” said Gary Gensler, chair of the SEC. “Our core bargain from the 1930s is that investors get to decide which risks to take, as long as public companies provide full and fair disclosure and are truthful in those disclosures. Today, investors representing literally tens of trillions of dollars support climate-related disclosures because they recognize that climate risks can pose significant financial risks to companies, and investors need reliable information about climate risks to make informed investment decisions.”

The proposed rule  change would require the registrant to disclose information about its governance of climate-related risks and relevant risk management processes;  how any climate-related risks identified by the registrant have had or are likely to have a material impact on its business and consolidated financial statements; how any identified climate-related risks have affected or are likely to affect the registrant’s strategy, business model and outlook; and the impact of climate-related events (severe weather events and other natural conditions) and transition activities on the line items of a registrant’s consolidated financial statements, as well as on the financial estimates and assumptions used in the financial statements.

The SEC will accept comments for 30 days after the proposed rule is published in theFederal Register. Electronic comments may be sent towww.sec.gov/rules/submitcomments.htm. Emailed comments should be sent to rule-comments@sec.gov and should include the file number S7-10-22 on the subject line. Paper comments may be sent to Vanessa A. Countryman, Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090. All submissions should refer to File Number S7-10-22.