It’s well known that the SEC’s pending climate disclosure rule stoked a great deal of debate, particularly concerning the costs and benefits and questions of the SEC’s authority. Equally important are some less dramatic but more profound practical concerns about the rule’s auditing requirements. 

Consider the views on this topic of CohnReznick, a national accounting firm

Mayer Brown’s Larry Cunningham testified today before the House Financial Services Committee at a hearing titled: Oversight of the SEC’s Proposed Climate Disclosure Rule: A Future of Legal Hurdles.

The SEC’s proposed climate risk disclosure rules, which we discussed here have proven to be quite controversial and generated significant comment from market participants.  The SEC is

Public company directors are being advised to plan for forthcoming disclosure duties addressing various topics from the environment to human capital. While boards are prudent to be prepared, directors should maintain perspective as these incubating disclosure requirements come to fruition, and be supportive of management during the process. Read more