US SEC Climate Disclosure Rules are created in response to increasing recognition that investors need more consistent, comparable, and decision-useful information for making sound investments considering climate-related risks and opportunities.

Who would SEC apply to?

Rules are mandatory in USA for below companies;

  • Large Accelerated Filers >$700M public float
  • Accelerated Filers >$250M, <$700M public float, $100M+ annual revenue
  • Smaller Reporting Company <$250M public float, <$100M annual revenue

LAF's and AF's to start disclosing Scope 1&2 data in 2024.

Companies have to report:

  • Scopes 1-2 GHG emissions
  • Scope 3 if material
  • Climate risks (impact on business, management, and integration)
  • Use of carbon offsets
  • Climate goals, transition plan, and scenario analysis (if used/set)
  • Board-level oversight

To whom and how to report:

According to the SEC, the proposed rule would require SEC-registered domestic or foreign companies to include climate-related information in registration statements and periodic reports such as 10-K annual reports.