What
to
do
to
get
SEC-ready:
WHAT IS THE CLIMATE DISCLOSURE RULE?
In March 2022, the U.S. Securities and Exchange
Commission (SEC) issued a new regulatory proposal
that would mandate climate disclosure within financial
reports for publicly-listed companies. The proposal
focuses specifically on how climate risks are identified,
assessed, managed, and disclosed; climate risk
scenario analysis or the financial impact of severe
weather and other natural events as well as transition
activities; and greenhouse gas emissions (GHG). In
short, calling for full transparency on plans to reduce
carbon emissions and risks, and how companies are
doing against those plans.
Much of the
proposal is
based on the
TCFD
framework with
added detail
like many other
regulatory
standards in
Europe. Global
disclosure
mandates that
also take
guidance from
the TCFD to be
aware of
include, the EU
CSRD, UK SDR,
and the global
ISSB standards.
GHG EMISSIONS REPORTING: SCOPE 1 &
2 FOR ALL FILERS, AND SCOPE 3 TBD
REDUCTION PLANS: DISCLOSURE OF ANY
TARGETS/GOALS AND PLANS TO MEET TARGETS
STRESS TESTS OF CLIMATE-RELATED RISK:
FINANCIAL IMPACTS & GOVERNANCE
STRATEGY FOR MANAGING RISK
