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Securities and Exchange Commission Climate Reporting Disclosure

Securities and Exchange Commission Climate Reporting Disclosure

Securities and Exchange Commission Climate Reporting Disclosure

industry

All

Location

United States

Status

Adopted

Overview

On March 21, 2022, the Securities and Exchange Commission (SEC) issued a proposed rule that would enhance and standardize climate disclosure rules for publicly listed companies and require them to integrate the information into their SEC filings. The rule was finalized on March 6, 2024. The final rule is significantly less stringent than the initial proposal. Most notably, the final rule has looser thresholds for reporting scope 1 and scope 2 emissions, and there are no requirements to report scope 3 emissions. Under the final rule, companies must only report emissions information when those emissions are “material.” The final rule will still require disclosure of information regarding a registrant's climate-related risks that “have had or are reasonably likely to have material impact on its business strategy, results of operation, or financial condition.” The rule impacts approximately 2,000 publicly listed companies in the United States (US). 

Requirements

  • Measure and disclose scope 1 and scope 2 emissions

  • Disclose climate-related risks

  • Disclose climate targets and goals (if material)

Affected Companies

Revenue thresholds

Varied revenue, categorized by SEC

Company size

Varied size, categorized by SEC

Company Type

Publicly listed and private; registered with the SEC under forms S-1, F-1, S-3, F-3, S-4, F-4, S-11, 6-K, 10, 10-Q, 10-K, and 20-F

Geography

US and international

industry

All

Status:

Adopted, stayed pending judicial review

Adopted, stayed pending judicial review

Adopted, stayed pending judicial review

timeline for compliance

The rule was adopted by the SEC on March 6, 2024 and mandates reporting for fiscal year 2025 from large accelerated filers. However, the execution and implementation of this rule is temporarily on hold while it undergoes a judicial review.

The information provided on this website is for general informational purposes only and does not constitute legal advice. While Carbon Direct strives to ensure that the content is accurate and up-to-date, we make no representations or warranties regarding the completeness, accuracy, or reliability of the information presented. Climate policies and related legal frameworks can be complex and may vary by jurisdiction; the information provided here may not apply to your specific circumstances.

We strongly advise consulting with your own legal counsel and other professional advisors before making decisions based on the content of this website. By using this site, you acknowledge that Carbon Direct is not liable for any actions taken or decisions made based on the information provided.

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