WHAT DO I NEED TO KNOW ABOUT THE UPCOMING SEC REGULATIONS ON GHG EMISSIONS AND HOW MIGHT IT AFFECT MY COMPANY’S OPERATIONS?
Earlier this year, the U.S. Securities and Exchange Commission (SEC) proposed a new rule designed to enhance how companies disclose potential climate-related impacts on their business. This comes at a time when an increasing number of investors are expressing concern about climate risk for the businesses they invest in.
The proposed rule will require all publicly held companies to annually disclose climate-related information and risks, including the impacts their company has on the environment and the potential risks to their operations due to climate change.
The rule also proposed that ESG-focused investment firms be able to provide analysis of financial data related to climate and greenhouse gas emissions.
The new rule could become effective almost immediately for certain large companies, which will be expected to begin the disclosure process for fiscal year 2023 at the beginning of 2024.
Medium companies will begin preparing disclosure for the 2024 fiscal year in 2025. The smallest companies will have an additional year and be expected to disclose for the 2025 fiscal year at the beginning of 2026.
If your company needs help understanding its SEC disclosure requirements, reach out to us today.
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