Service Description

SEC The SEC Climate Disclosure Rule aims to enhance the climate-related disclosures of US publicly traded companies by including information relating to climate-related risks Originally set for a 2023 implementation, various delays have led to a potential finalisation of rules in Spring 2024. MANDATORY - INTERNATIONAL CLIMATE RISK - FINANCIAL RISK Who reports? Regulations will apply to US publicly traded companies and are applicable to both foreign and domestic organisations The regulations would likely be applicable to FY2024 and FY2025 for smaller companies. What is reported? SEC regulation is broadly aligned to the fours pillars of TOFD but with some key differences: Governance Includes a requirement to disclose whether board management have climate-nak expertise -Disclosures relating to opportunities are not mandatory, unlike TCFD Strategy, business model, and outlook -Include impacts of climate-related events and transition activities on using pre-defined KPIs -CSA disclosure is only required if undertaken by the organisation. Under TCFD it is a core pillar Rask Management: -Disclose the impacts of climate-related risks on specific line items in the organisation's financial statement GHG emission metrics: -Disclose scope 182 emissions intensities -Requires limited assurance of scope 182 emissions -Discicse details of RECs and offsets used by the organisation Exemptions exist for smaller companies regarding scope 3 disclosures. Information to be disclosed in financial statements and annual reports eg Form 10-K Benefits Improve the transparency of climate-related risk information for investors of US-based companies