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What Is the SEC’s Climate-Related Disclosure Regulation?
Released in March 2022, the SEC’s proposed Climate-Related Disclosure rules*The finalized rules will likely differ from the rules proposed in March 2022. require publicly listed companies to report:
- Scope 1 and Scope 2 greenhouse gas (GHG) emissions.
- Scope 3 GHG emissions if deemed material, or if the business has set a Scope 3 emissions reduction target.
- Climate-related risks, identified according to the four components of the Task Force on Climate-related Financial Disclosures (TCFD) framework:
- Governance
- Strategy
- Risk Management
- Metrics and Targets
- Governance of climate-related risks and relevant risk management processes.
- Relevant targets, goals and transition plans, if available.
Additional things to know:
- Accelerated and large accelerated filers must get an attestation report from an independent attestation service provider. It must cover Scope 1 and Scope 2 emissions disclosures, at a minimum.
- Reporting companies must also disclose certain climate-related financial statement metrics and related disclosures in a note to their audited financial statements.
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
- Non-accelerated filers
- Smaller reporting companies
For information about these categories, please visit this U.S. Securities and Exchange Commission page.
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
- Non-accelerated filers
- Smaller reporting companies
For information about these categories, please visit this U.S. Securities and Exchange Commission page.
What Is the Timeline for SEC ESG Reporting?
When the SEC released its proposed climate-related disclosure rules in March 2022, it provided the compliance dates shown in the table below. The finalized rules will likely provide different dates.
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:
- 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 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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