Infographic Article

Highlights from the SEC climate-related disclosures rule (infographic)

SEC climate-related financial disclosure rule header image
Energy & Climate Consulting
Energy & Climate Consulting

The SEC’s new climate-related disclosure rule is complex, so we break down the key highlights in our latest infographic.

The SEC’s Enhancement and Standardization of Climate-Related Disclosures for Investors aims to address investors’ needs by adopting rules that require registrants to disclose certain information about climate-related risks that have materially impacted (or are reasonably likely to impact) a company’s business strategy, profit and losses financial statement, or financial condition. Key aspects of the final rule Definition of materiality The SEC points to previous rules and Supreme Court precedent. An impact or risk is considered material if there is a substantial likelihood that a reasonable investor would consider it important when determining investment or voting decisions. Materiality determination is fact specific and based on quantitative and qualitative considerations. Disclosure of: Climate-related risks with a material impact Climate-related goals and targets that are materially relevant Use of RECs and Carbon Credits, if used as a material component Scope 1 & 2 GHG emissions, if material [NOT REQUIRED ICON] Scope 3 emissions Timing Become effective 60 days after published in the Federal Register and then will be phased in.

Check out our blog post for more detailed information or get in touch with one of our climate experts to see how the rule may affect your organization.