Climate Change Attorney Blog

The Securities and Exchange Commission issued interpretive guidance on the application of existing regulations to the need to disclose the impacts of climate change on business. In a press release issued on January 27th the SEC provided examples of instances in which climate change or regulations related to climate change may trigger disclosure requirements, noting the guidance highlighted:

" *Impact of Legislation and Regulation: When assessing potential disclosure obligations, a company should consider whether the impact of certain existing laws and regulations regarding climate change is material. In certain circumstances, a company should also evaluate the potential impact of pending legislation and regulation related to this topic.

*Impact of International Accords: A company should consider, and disclose when material, the risks or effects on its business of international accords and treaties relating to climate change.

*Indirect Consequences of Regulation or Business Trends: Legal, technological, political and scientific developments regarding climate change may create new opportunities or risks for companies. For instance, a company may face decreased demand for goods that produce significant greenhouse gas emissions or increased demand for goods that result in lower emissions than competing products. As such, a company should consider, for disclosure purposes, the actual or potential indirect consequences it may face due to climate change related regulatory or business trends.

*Physical Impacts of Climate Change: Companies should also evaluate for disclosure purposes the actual and potential material impacts of environmental matters on their business."

-Steven Silverberg

The United Nation Food and Agriculture Organization has released a report which finds that proper use of grassland can assist in reducing carbon dioxide and therefore aid in combating Climate Change. In a summary of the report, Constance Neely, co-author of the report, is quoted as saying: "Grasslands represent the majority of the world's agricultural area and they hold an enormous amount of the soil carbon, so we have a fantastic potential to have both better livelihoods and a better natural resource base while mitigating and adapting to climate change,"

The report goes on to claim that if between 5 and 10 percent of all grazing lands were placed under carbon sequestration management by 2020, the result could be the storage of 184 million metric tons of carbon a year.

-Steven Silverberg

A study released today discusses the impact of Climate Change on water resources and ultimately across border conflicts over those resources. The study issued by the Pacific Institute notes that 40% of the world's population obtains its water from shared resources.

As a result of the impacts of climate change the study suggests that international conflicts over water resources will increase. As noted in a press release accompanying the study: "Most existing treaties and agreements are based on the outdated assumption that future water supply and quality will not change. Adapting to climate change is going to require changes in the institutions and policies that have been put in place under international treaties.”

-Steven M. Silverberg