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David Lynn spoke to the The Wall Street Journal on the cost of the Securities and Exchange Commission‘s (SEC) proposed rules on climate disclosure, which emerges as a key battleground as companies and politicians fight over a plan to force companies to account for their impact on the environment and the risks they face due to the currency climate.
“This climate regulation is unlike anything I have seen in my 25-year career in securities law, in the breadth and scope of the proposals,” David said. “It sets up a whole new disclosure regime.”
For companies starting from scratch in reporting climate data, complying with the rules could be more costly than the SEC estimates. According to David, this will involve creating new systems to collect, analyze and report the necessary data, and possibly hiring new employees, consultants and auditors. He added that the costs are difficult to estimate and could be much higher than the SEC thinks.
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