SEC Finds Gaps in Climate Change Disclosures in Annual Reports

The U.S. Securities and Exchange Commission is getting more specific about what companies should include about climate change in their annual financial reports.

The SEC, which regularly scrutinizes corporate disclosures, identified gaps that staff have found in recent filings regarding the impact of climate change and related regulations. Under U.S. rules, companies are required to disclose issues deemed to be material to investors, including those related to climate change.

The SEC on Wednesday released a sampling of follow-up questions its staff might send to corporate executives who can be responsible for omissions. The regulator signaled that firms should pay particularly ...