SEC Mandates Climate Disclosure in Registrations & Annual Reports

Today, the Securities and Exchange Commission adopted final rules to require registrants to disclose certain climate-related information in registration statements and annual reports.

The rules and supporting documents can be found here: | The Enhancement and Standardization of Climate-Related Disclosures for Investors

The final rules require a registrant to disclose, among other things:

  • Material climate-related risks
  • Activities to mitigate or adapt to such risks
  • Information about the registrant’s board of directors’ oversight of climate-related risks and management’s role in managing material climate-related risks
  • Information on any climate-related targets or goals that are material to the registrant’s business, results of operations, or financial condition.

Further, to facilitate investors’ assessment of certain climate-related risks, the final rules require disclosure of Scope 1 and/or Scope 2 greenhouse gas (GHG) emissions on a phased-in basis by certain larger registrants when those emissions are material; the filing of an attestation report covering the required disclosure of such registrants’ Scope 1 and/or Scope 2 emissions, also on a phased-in basis; and disclosure of the financial statement effects of severe weather events and other natural conditions including, for example, costs and losses. The final rules include a phased-in compliance period for all registrants, with the compliance date dependent on the registrant’s filer status and the content of the disclosure.

The rules will go into effect 60 days from being published in the Code of Federal Regulations.

Contact us with any questions, or if you need assistance developing your Scope 1 and/or Scope 2 emissions or related program requirements.

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