The Securities and Exchange Commission (SEC) issued interpretive guidance in February 2009 requiring publicly traded companies to consider climate change impacts, such as physical damage it could cause, economic impacts of domestic and international greenhouse gas emissions-reduction rules.
Companies will start to discuss climate in risk factors, description of the business, legal proceedings, management's discussion and analysis.
When considering disclosure obligations, companies will consider whether the impact of existing laws and regulations on climate is material such as international accords and treaties relating to climate change. For instance, a company may face decreased demand for products that produce significant greenhouse gas emissions, or increased demand for products that result in lower emissions.
Green concerns are gaining momentum. In February 2009, the Los Angeles Times reported Tesla Motors announced a planned $100-million Initial Public Offering. Tesla Motors also recently posted an ad on www.acc.com that it is searching for a General Counsel. Though in September 2009, it announced it hired Jon Sobel to lead the legal team, Sobel apparently left the company in December 2009 after 4 months with no public explanation as to the reasons for his departure.
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