Question 1

What is the SEC's new climate rule?

Accepted Answer

The Securities and Exchange Commission—the main US regulator over public financial markets—adopted a new rule in March 2024 that requires publicly-listed companies to report climate data alongside their financial results. The rule calls for transparency on carbon emissions, climate risks, and how boards and executives are integrating climate into their wider strategy. Companies need to disclose their current performance, their plans to reduce those emissions and risks, and how they’re doing against those plans.

Question 2

Which companies are covered by this rule?

Accepted Answer

All US public companies, and all non-US companies with US-traded shares. While private companies aren’t covered, those on a path to an IPO will need to demonstrate to investors that their climate reporting is ready for public markets. Some large private companies with global operations may also be covered by related programs in other jurisdictions.

Question 3

What does the SEC require?

Accepted Answer

The SEC is acting on behalf of investors, who want to see meaningful climate data presented in a standardized way to allow for efficient comparisons. To make this easier for both companies and investors, the SEC has modeled its rules on the work of the Taskforce for Climate-related Financial Disclosures (TCFD), whose guidelines ensure disclosures give potential investors a real understanding of the carbon and climate risks in each company.

Question 4

What's the current status of the SEC rule?

Accepted Answer

The SEC adopted the final version of its climate rule on March 6th 2024. For a detailed breakdown of the rule, read our blog.

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FAQ

Understanding the SEC's new climate disclosure rule

Meet our Policy Advisory Board

Mary Schapiro

Robert J. Jackson, Jr.

Annette Nazareth

Curtis Ravenel

Sarah Bloom Raskin

Paul Simpson OBE

Tom Rivett-Carnac OBE

Lord Adair Turner

Gayle Miller

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