Analysis of recent SEC Staff comment letters on climate disclosure
Here’s an excerpt from this note from Dennis McGowan of the Center for Audit Quality, who reviewed 29 Corp Fin comment letters dealing with climate-related disclosures in Form 10-Ks:
My colleagues and I reviewed the companies’ climate-related quantitative disclosures and identified the following key takeaways:
● There was little uniformity in the definition or determination of climate-related capital expenses.
● When a company described costs associated with physical climate-related risks they were typically costs incurred due to property damage from severe weather events.
● Climate-related compliance costs were often described as the expenses incurred to comply with federal and state climate-related laws.
● Roughly two-thirds of the companies indicated that they did not purchase carbon credits or offsets during the reporting period.