ESG Disclosures Risk Factor
(Climate Change)
Summary
This risk factor is meant for use in a public company's periodic disclosure, such as a Form 10-K, or a registration statement, such as a Form S-1, to disclose risks relating to the effects of climate change and related regulation. This clause includes practical guidance and drafting notes. The effects of climate change threaten to, or already do, impose significant costs on businesses across industries. Interruptions to logistics, weather damage, and drought are just a few examples of climate-change-related challenges that companies commonly face. In addition, U.S. and foreign regulatory agencies have promulgated regulations to address the effects of climate change. When drafting this risk factor, tailor it to the company, the company's industry, and any other circumstances which may be relevant. For information on drafting risk factors, see Risk Factor Drafting for a Registration Statement and Top 10 Practice Tips: Risk Factors. For more ESG-related risk factors, see ESG Disclosures Risk Factor (Reputational Risk) and ESG Disclosures Risk Factor (GHG Emissions) For more information relating to ESG disclosure, see the Environmental, Social, and Governance (ESG) Resource Kit, Corporate ESG Disclosure: Recent Trends and Developments, and 5 Tips on Getting Started with an ESG Strategy Video.