Reporting

SEC Rules to Enhance and Standardise Climate-Related Disclosures for Investors

By the U.S. Securities and Exchange Commission (SEC)
March 2022

In 2022, the U.S. Securities and Exchange Commission (SEC) proposed for public comment amendments to its rules under the Securities Act of 1933 (“Securities Act”) and Securities Exchange Act of 1934 (“Exchange Act”) that would require registrants to provide certain climate-related information in their registration statements and annual reports. 

The proposed rules would require information about a registrant’s climate-related risks that are reasonably likely to have a material impact on its business, results of operations, or financial condition. The required information about climate-related risks would also include disclosure of a registrant’s greenhouse gas emissions, which have become a commonly used metric to assess a registrant’s exposure to such risks. In addition, under the proposed rules, certain climate-related financial metrics would be asked for in a registrant’s audited financial statements.

If a company has publicly set climate goals, it will have to disclose the detailed strategy and roadmap to achieve its climate-related targets and objectives and report if there has been progress over time in getting closer to those goals.  In addition to Scope 1 and 2 GHG emissions disclosures, companies would be required to make Scope 3 disclosures – if material – or if the company has set a GHG emissions target or goal that includes Scope 3 GHG emissions, in which business travel is included.

Read more:
The airport has recently announced new restrictions on general aviation flights, citing concerns over the environmental impact of private jets....
The EU has introduced new rules on corporate sustainability reporting through the Corporate Sustainability Reporting Directive (CSRD), which requires large...
France, Belgium, Luxembourg, the Netherlands, and Portugal presented an Any Other Business (AOB) point emphasising the need to strengthen the...

This website stores cookies on your computer. These cookies are used to collect information about how you interact with our website and allow us to remember you. We use this information in order to improve and customize your browsing experience and for analytics and metrics about our visitors both on this website and other media. To find out more about the cookies we use, see our Privacy Policy.