The Securities and Exchange Commission has released its 2021 “Agency Rule List” to give companies an idea of the regulations in its pipeline and when they can expect them to move forward. The list includes a schedule of proposed and final rules on such topics such as climate change disclosures, cybersecurity risk governance, board diversity, and more.
The list includes regulations that would expand environmental, social, and governance (ESG)-related disclosures for public companies in instances where climate change could affect company financials. The SEC is also looking for ways to encourage companies to disclose their plans to reduce their carbon footprints. While the proposed rule list is only that—a set of regulations under consideration—the idea is that the commission releases these proposals now with more detail to follow.
The Division of Corporation Finance is “considering recommending that the Commission propose rule amendments to enhance registrant disclosures regarding issuers’ climate-related risks and opportunities,” the proposed rule on climate change disclosure reads.
Other steps the SEC has taken in recent days on the issue have included the creation of a SEC senior advisor on ESG and climate change, and the mobilization of an enforcement task force on ESG and climate issues.
The issue of cybersecurity risk governance is also included on the SEC’s list of proposed rules. With numerous recent cyber-attacks on U.S. companies and agencies making headlines, like the hack on the Colonial Pipeline in May, the topic has taken center stage and many stakeholders are calling for companies to disclose more about their cybersecurity practices. The SEC has proposed “amendments to enhance issuer disclosures regarding cybersecurity risk governance.”
Among other proposed rules, the SEC is considering regulation that would enhance registrant disclosures on the diversity of companies’ board members, disclosure of payments to governments by resource extractors like oil and mining companies, and proxy voting reform. 