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SEC releases long-awaited rules for climate-related disclosure
Nearly two years have passed since the Securities and Exchange Commission (SEC) proposed climate-related disclosure rules for large, publicly traded companies. And with the release of the finalized rules on March 6th, speculation around corporate reporting requirements is replaced with certainty.
What Is the SEC’s Climate-Related Disclosure Regulation?
The key requirements of the SEC’s finalized Climate-Related Disclosure rules include:
- Scope 1 and Scope 2 greenhouse gas (GHG) emissions disclosures.
- Climate-related risks that have had or are likely to have a material impact on the company’s strategy, business model and outlook in the TCFD-aligned areas of:
- Governance.
- Strategy.
- Risk management.
- Metrics and targets.
- Governance of climate-related risks and relevant risk management processes.
- Any processes for identifying, assessing and managing material climate-related risks, and whether and how any processes are integrated into the company’s overall risk management system or processes.
- Relevant climate-related targets and goals, if any.
Additional things to know:
An assurance report at the limited assurance level is required; large accelerated filers will need to provide reports at the reasonable assurance level after a transition period.
Which Companies Must Comply with the SEC ESG Rules?
The following categories of publicly listed U.S. companies will need to comply with the SEC regulations:
- Large accelerated filers
- Accelerated filers
For information about these categories, please visit this U.S. Securities and Exchange Commission page.
What Is the Timeline for SEC ESG Reporting?
Large accelerated filers companies will first have to report their Scope 1 and Scope 2 emissions for fiscal year 2026; accelerated filers will need to report these emissions beginning with fiscal year 2028.
How Sphera Can Help
Sphera helps thousands of customers with software, data and consulting services that are built on decades of expertise and rich industry knowledge. Businesses worldwide rely on Sphera for solutions and guidance that enable transparent, auditable ESG and sustainability reporting.
Recognized in 2023 by independent analyst firm Verdantix as a market leader in ESG reporting and data management software Sphera supports corporate reporting efforts among companies with mature reporting practices, as well as those that are just starting.
How Sphera Can Help
Sphera helps thousands of customers with software, data and consulting services that are built on decades of expertise and rich industry knowledge. Businesses worldwide rely on Sphera for solutions and guidance that enable transparent, auditable ESG and sustainability reporting.
Recognized in 2023 by independent analyst firm Verdantix as a market leader in ESG reporting and data management software, Sphera supports corporate reporting efforts among companies with mature reporting practices, as well as those that are just starting.
Sphera’s Market-Leading Software Supports ESG Reporting
- The SpheraCloud Corporate Sustainability solution helps companies gather the data they need to meet the various components of ESG and sustainability reporting:
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- SpheraCloud Environmental Accounting software enables companies to measure, monitor and report their air/GHG emissions and management of water and waste. This software was recognized by Environment + Energy Leader as a 2023 Product of the Year.
- Sphera’s market-leading LCA automation solution allows companies to quantify the environmental impact of entire product portfolios in a fraction of the time it takes to conduct life cycle assessments (LCAs) product by product. It provides the most accurate, cost-effective way to generate the information needed to meet Scope 3 reporting requirements.
- Sphera’s Supply Chain Sustainability offering enables buyers and suppliers to connect and share information, facilitating the seamless collection of data for Scope 3 emissions reporting. It provides overall supply chain transparency for improved supply chain management.
Sphera’s Sustainability Consulting Team Brings Decades of Expertise
- Sphera’s expert consultants help companies prepare for ESG and sustainability reporting by:
- Guiding them through materiality and double materiality assessments.
- Addressing their reporting challenges, including those around climate risk reporting.
- Helping them build ESG and sustainability strategies that manage risks and capitalize on opportunities.
Sphera’s Sustainability Consulting Team Brings Decades of Expertise
- Sphera’s expert consultants help companies prepare for ESG and sustainability reporting by:
- Guiding them through materiality and double materiality assessments.
- Addressing their reporting challenges, including those around climate risk reporting.
- Helping them build ESG and sustainability strategies that manage risks and capitalize on opportunities.
Sphera’s ESG & Sustainability Solutions Consistently Recognized as Industry Leaders
Sphera’s ESG & Sustainability Solutions Consistently Recognized as Industry Leaders
Learn More About the SEC Climate-Related Disclosure Rules and ESG Reporting
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