The US Securities and Exchange Commission (SEC) is ushering in a new era of climate-related disclosure.
On March 21, the agency released a proposed rule that would require all companies listed on US exchanges to include detailed climate-related information in their periodic filings. The rule, in part inspired by the Task Force on Climate-related Financial Disclosures (TCFD), would force companies to describe their climate risks and the likely impacts they could have on their businesses, strategies, and future expectations. It would also mandate Scope 1 and 2 greenhouse gas emissions disclosures and the reporting of climate-related financial statement metrics, among other things.
In this white paper, we provide an overview of the proposed rule and how it could forever change how US-listed companies assess, manage, and disclose their climate-related risks.