ESG Disclosures Risk Factor
(GHG Emissions)
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 regulations relating to greenhouse gas (GHG) emissions regulation. This clause includes practical guidance and drafting notes. In recent years, the U.S. federal and state government, as well as governments around the world, have sought to control greenhouse gas emissions by imposing tighter limits on permissible emissions levels for cars, trucks, and other products that use fossil fuels, as well as on the fuels themselves. Companies operating in these markets may face considerable additional costs when complying with these new regulations, or may find their products unable to compete with others in the market that are able to comply more easily. Tailor this risk factor to the company's business and the regulatory regime applicable to its industry. 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 (Climate Change). 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.