HOW TO COMPLY:
What to do to get SEC-ready
TO COMPLY WITH THE SEC'S NEW RULES, ELIGIBLE ORGANIZATIONS AND ISSUERS WILL NEED TO
TAKE THE FOLLOWING ANNUAL COMPLIANCE STEPS, STARTING IN 2024:
Step 1: Integrate climate risk and carbon accounting into your regular financial
accounting and regulatory reporting cycles.
Step 2: Track and disclose the required information – SEC reports will likely
require management commentary and data on a company's:
01 — Reporting Scope 1 and 2 Greenhouse Gas Emissions (if
Material): Large Accelerated Filers (LAFs) and Accelerated Filers
(AFs) will require disclosure of Scope 1 and/or Scope 2 greenhouse
gas (GHG) emissions on a phased-in basis. Indirect Scope 3 GHG
emissions are no longer included in the final reporting mandate.
02 — Disclosure of Climate-Related Risks: Registrants must
disclose material climate-related risks and their actual or
reasonably likely material impacts on business operations, strategy,
financial condition, and outlook. Companies must disclose financial
impacts greater than 1% of profits before taxes (specifically,
companies must disclose capitalized costs, expenditures, charges,
and losses incurred).
03 — Mitigation Pathways: Activities taken to mitigate or adapt
to a material climate-related risk or use of transition plans, scenario
analysis or internal carbon prices to manage a material climate-
related risk.
04 — Board Oversight and Management's Role: Information on
the registrant's board of directors' oversight of climate-related risks
and the role of management in managing these risks must be
provided.
Sustainability & Energy Management Simplified
