SEC climate disclosure requirements

Perspectives

Proposed SEC climate disclosure requirements

10 key questions answered

The SEC may soon require public companies to make climate disclosures that are more transparent and provide investors with consistent, comparable, and decision-useful information. For many companies, that may mean significant change to climate disclosure practices, and likely, a lot of questions. Deloitte’s climate disclosure FAQs are here to help you prepare.

A new era for SEC disclosure requirements

On March 21, 2022, the SEC issued a proposed rule that would enhance and standardize climate disclosure requirements provided by public companies. The new regulation would require organizations to provide certain climate disclosures in its registration statements and annual reports. These would include climate-related financial impact and expenditure metrics as well as a discussion of climate-related impacts on financial estimates and assumptions in the financial statements. These disclosures would also be subject to management’s internal control over financial reporting and external audit.

This rule marks an inflection point in the US: If the proposal is finalized, climate reporting would move from being largely voluntary to being regulated for publicly listed companies, with climate information to be disclosed in a consistent format and integrated into SEC filings. Standardized, reliable, and consistent climate disclosure can help investors and other stakeholders understand how climate change might affect the companies they work with, oversee, and allocate capital.

SEC proposed climate disclosure rule FAQ

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Ready to enhance your climate-related disclosures?

Start by reviewing what’s in store for your organization and our seven steps to getting prepared.

Climate risk disclosure FAQs

Let’s answer 10 key questions being asked about the proposed SEC rule.

Contact us to learn more about proposed SEC climate disclosure requirements

 
 
 
 
 
 
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