Michael R. Young
2. Materiality Standard: Aligned with existing securities laws and Supreme Court precedents, the SEC uses a materiality standard that takes into consideration quantitative and qualitative factors for effective risk assessment. The SEC does not provide a one-size-fits-all formula and it is up to eac...
The CSRD applies to Scope 1, 2 and 3 emissions. It utilizes a double materiality standard, in that companies will be expected to report on 1) the financial impacts of climate change on their business and 2) the impact of their business upon the environment. As approved and adopted, the ...
Risk Factors (Item 105) Updated Materiality Standard.Item 105 will be updated to require “material” risk factors (replacing the existing “most significant” standard) to focus on risks that are important to investors in making an investment decision. Summary of Risk Factors May Be Required.If ...
, 426 U.S. 438, 448-49 (1976) (defining the materiality standard in the context of federal securities law); Basic, Inc. v. Levinson, 485 U.S. 224, 484-85 (1988) (adopting “the TSC Industries standard of materiality” in the context of § 10(b) of the Ex...
CISOs are key players in assessing the materiality of a breach, but the burden of assessing materiality needs to be made collaboratively by a suitably qualified team drawn from across multiple business departments. “Determining the material impact typically involves collaboration between IT, leg...
The adopting release emphasizes that "traditional notions of materiality under the Federal securities laws" apply when making this determination and that the materiality analysis should be made using the "reasonable investor" standard. The release specifically notes that materiality is not determined ...
“But when we have met with the Europeans, they said, ‘well, you know, yes, conceptually, that’s true. But we are not going to recognize anything that doesn’t have a double materiality standard,’ which you have even said, ‘we’re not going to go there,’”...
The SEC makes clear (as it has before) that the same standard of materiality applies for cybersecurity incidents as generally applies under the Securities and Exchange Act (i.e., information is material if “there is a substantial likelihood that a reasonable shareholder would consider...
[4] Instead, the SEC offered the following guidance: “consistent with the standard set out in the cases addressing materiality in the securities laws, that information is material if there is a substantial likelihood that a reasonable shareholder would consider it important in ma...