SEC Issues Guidance Regarding Climate Change Disclosures

On February 2, 2010, the U.S. Securities and Exchange Commission (the "SEC") issued an interpretive release to provide guidance to public companies regarding the SEC's disclosure requirements as they relate to climate change matters.1 This guidance is effective immediately and applies to all public companies, including those that are in the midst of preparing their annual reports on Form 10-K for 2009. Further, the guidance is broad in the companies it may impact - every public company should be considering how this guidance potentially impacts their disclosure, even if the effects of climate change are indirect.