September 2, 2020

02 September 2020

SEC Updates Disclosures Required by Regulation S-K — Impact on Environmental Disclosure

On August 26, 2020, the U.S. Securities and Exchange Commission (SEC) adopted amendments to “modernize” its rules requiring disclosure about a company’s business description, legal proceedings, and risk factors. The SEC amended these items to make them more clearly principles-based as well as to enhance the readability of disclosures, discourage repetitive and immaterial disclosures, and reduce the compliance burden on companies. The amendments were adopted substantially as proposed by the SEC in August 2019 with certain modifications. With regard to environmental matters, one of the amendments broadens disclosure about the material effects of environmental compliance to encompass the material effects of compliance with all laws, while the other changes the threshold for disclosure of environmental legal proceedings involving the government.