On March 21, 2022, the U.S. Securities and Exchange Commission (SEC) voted 3-1 to propose rule amendments that establish a framework requiring public companies to disclose climate-related risks to shareholders and the federal government in annual filings. The proposed rules, which build upon the SEC’s previous guidance on climate-related disclosures, are generally aligned with recommendations from the Task Force on Climate-related Financial Disclosures (TCFD) and are designed to meet investor demands for useful information on climate-related risks and the corresponding financial implications. Read our breakdown of the proposed disclosures as well as answers to frequently asked questions on the rules and who they would apply to below.