LITIGATION
WHO DOES IT APPLY TO?
The newly proposed climate rules apply to public companies with reporting
obligations under the Securities Exchange Act Section 13(a) or Section 15(d), and
companies filing a Securities Act or Exchange Act registration statement
(together, registrants).
WHAT ARE THE TIMELINES FOR COMPLIANCE?
When implemented, the requirements will be phased in with larger companies
reporting earlier than smaller companies, and the smallest companies being
exempted from some requirements. The table below outlines the phase-in
schedule for the reporting and assurance requirements.
WHAT DEFINES MATERIALITY IN THE CONTEXT OF EMISSIONS?
For climate-related disclosures, the SEC employed the same definition of
materiality that applies to financial reporting – that is, issues "reasonably likely to
have a material impact on the registrant's business strategy, results of operations,
or financial condition." Because materiality is defined as the likelihood that a
'reasonable investor' might consider something important, companies should, to
the extent feasible, document the facts used for these determinations considering
both qualitative and quantitative factors.
Sustainability & Energy Management Simplified
