U.S. SEC2023-10-05T09:05:56+00:00

US SEC Reporting

SEC Readiness Response

Getting ready for U.S. SEC
proposed climate risk
disclosure requirements

Proposed rule by the U.S. Securities and Exchange Commission

The SEC released a proposed rule on climate disclosure in March 2022 which is expected to finalise in 2023, affecting listed companies in the United States. The rule would bring in new requirements for greenhouse gas emissions tracking and climate risk reporting. It sets out to make reporting practices consistent and comparable to meet investor demand for decision-useful information.

Key Information

As with recent standards and regulations aimed at investor needs, the SEC rule is built around the Task Force for Climate-Related Financial Disclosures (TCFD) recommendations across the themes of Governance, Strategy, Risk Management, Metrics and Targets, as well as the Greenhouse Gas (GHG) Protocol for emissions reporting. This is in order to provide investors with consistent and comparable climate-related financial information. Listed companies in the U.S. would need to report their physical climate risks under various scenarios as well as scope 1 and scope 2 emissions, with scope 3 being phased-in for material sources. This would come into effect as early as the 2023 fiscal year (FY), with the same historical years required as financial years. The proposed rule sets out that SEC registrants would be mandated to include the climate-related disclosures in a separate section of Form 10-K annual reports. Finally, the requirements apply to registration statements such as initial public offerings.

5x6 SEC Table

Getting ready for mandatory reporting

How we can help

Ecometrica has years of experience helping companies meet their sustainability data reporting obligations with confidence. The new phase of mandatory disclosures in North America will require the robust, auditable scope 1, 2 and 3 reporting that the Ecometrica Sustainability Software Platform has been providing for over a decade through hundreds of proven implementations. The Platform has extensive capabilities that can help you report your entire value chain emissions, with the results broken down at the level proposed by the SEC in both absolute and intensity terms, and other material sustainability metrics, as well as TCFD-aligned physical risks. In addition, our expert analysts are on hand to provide assistance throughout the process, including quality assurance and target-setting assistance.

Get in touch for more information on how we can help you get ready for upcoming mandatory requirements in North America.

Key Phrases

TCFD2023-01-16T20:46:59+00:00

Task Force for Climate-Related Financial Disclosures. The TCFD has developed a framework to enable companies to effectively disclose climate-related risks and opportunities through their existing reporting processes. https://www.fsb-tcfd.org/

Base Year2023-03-28T13:56:46+00:00

In GHG reporting and accounting, a year chosen as a basis against which future emissions are compared.

Scope 32023-01-16T21:00:21+00:00

There are three emissions scopes. Scope 3 are indirect emissions which result from all other activities and sources not covered in scope 2. This includes business travel, commuting, waste, and 3rd party deliveries; reporting of all scope 3 emissions is typically not mandatory.

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