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:
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.
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