Understanding the New SEC Rule for Climate Disclosures: What Businesses Need to Do Now!

With the passing of the U.S. Securities and Exchange Commission’s (SEC) long-awaited climate-related disclosure rules, public companies and foreign private issuers will now have to include comprehensive climate risk disclosures in their annual reports and registration statements. The SEC rule introduces comprehensive climate-financial requirements that run parallel to those recently announced in California, Europe, China, and elsewhere. Navigating the new global regulatory landscape can pose challenges for companies new to climate disclosures and affected under multiple jurisdictions.

SCS Consulting Services' Managing Director of ESG Consulting, Bonnie Holman, and Senior Technical Project Manager, Eric Olson, discuss the new SEC requirements and reporting best practices including:

• Defining aspects of the new SEC climate disclosure rule

• What companies fall within the scope of the rule

• Required climate risk disclosures, including greenhouse gas (GHG) emissions and assurance 

• Data collection/reporting timelines and methods for reporting

• How the SEC Rule aligns to the evolving global climate regulatory landscape and other frameworks (IFRS S2, TCFD, ESRS)

• Steps companies can take to get ready for the rule