What CPAs Need to Know About the SEC Climate-Related Risk Proposal

Five Practical Steps for Preparation and Implementation

Jalal Soroosh, PhD, CMA

In BriefBy now, most CPAs are aware that the SEC issued a landmark proposal that would require standardized disclosure of climate-related risks for companies, though they may not be aware of exactly what the proposal requires and when it takes effect. While the ultimate provisions remain uncertain—in large part due to the politically contentious nature of the SEC's initiative—that does not mean corporate leaders and their financial advisors should sit still. The author outlines a five-step strategy companies can adapt to be prepared for the SEC proposal's implementation, strengthening internal communications, reporting systems, and accountability in the process.