David Lynn spoke to Agenda about the Securities and Exchange Commission's (SEC) rule proposal about voluntary disclosures on climate change-related issues.
Boards should look now at whether their processes for evaluating and overseeing climate risks would "pass muster" under the proposed rule, David said.
"I would imagine there's a lot of pressure on the SEC to get these rules adopted before the midterm elections, and that's a short turnaround time for a rule proposal of this magnitude," he added. But if the rule is adopted in 2023, companies won't have to file their first annual reports with these disclosures until 2024, so "boards don't need to hit the panic button right away."
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