In a piece published by Law360, White & Case partners Morton Pierce and Michelle Rutta examine how the US Securities and Exchange Commission’s proposed climate disclosure rules will likely impact the oversight and governance practices of public company boards of directors and management teams.
In the piece, Pierce and Rutta note that the landmark proposal requires, among other things, an unprecedented level of detailed disclosures about companies’ governance of climate-related risks, and their process for identifying, assessing and managing them.
Pierce and Rutta argue, "By mandating disclosure of such details as how board information is obtained, how many times various topics are discussed, how the board considers specific risks and determines specific policies, the processes through which management identifies, evaluates and mitigates climate-related risk, and the detailed expertise of those participating in discussions, the SEC is effectively attempting to use disclosure to dictate board and office behavior."
"These matters have traditionally been, and should continue to be, left to state law fiduciary duty principles.."
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