SEC Proposes Changes to Regulation S-K Disclosure Requirements

On August 8, 2019, the SEC proposed amendments to disclosure of business, legal proceedings and risk factors under Regulation S-K as part of its ongoing initiative to update and modernize its disclosure requirements. The proposed amendments provide a more principles-based approach to disclosure that gives companies greater flexibility in determining what disclosures are necessary. The proposed amendments also seek to require companies to disclose material information about human capital resources, a topic which has received increased attention from investors and other stakeholders in the last few years. Notably absent from the proposed amendments are disclosure requirements specifically related to climate risks, which regulators and investors have urged the SEC to consider in light of the growing importance of climate change to companies. This push for more regulated, standardized sustainability disclosures comes at a time when companies are increasingly making voluntary sustainability disclosures. The full text of the proposed rule amendments is available here.