Portfolio Media . Inc . | 230 Park Avenue , 7 th Floor | New York , NY 10169 | www . law360 . com Phone : + 1 646 783 7100 | Fax : + 1 646 783 7161 | customerservice @ law360 . com
8 Tips As GCs Prep For New SEC Climate Disclosure Rules
By Charles Still , Troy Harder and Chase Edmunds ( March 27 , 2024 , 4:17 PM EDT )
On March 6 , the U . S . Securities and Exchange Commission adopted rules [ 1 ] governing climate-related disclosures that , although significantly pared back from the rules proposed two years ago , represent a major change to the existing public company disclosure regime .
The rules require that public companies include the following , among other disclosures , in reports and registration statements filed with the SEC :
�
�
�
�
�
For " large accelerated filers " and " accelerated filers " — other than those that qualify as a " smaller reporting company " or " emerging growth company " — disclosure of Scope 1 and Scope 2 greenhouse gas emissions data ,[ 2 ] to the extent material , with third-party attestation being required for such data beginning after the third fiscal year of disclosure ;
Detailed disclosures regarding climate-related risks that have materially affected or are reasonably likely to have a material impact on the company , including on its strategy , the results of its operations or financial condition , and the actual and potential material impacts of any such risks on the company ' s strategy , business model and outlook ;
Disclosures regarding the company ' s activities , if any , to mitigate or adapt to a material climate-related risk , including a qualitative and quantitative description of material expenditures and material impacts on financial estimates and assumptions that directly result from the mitigation or adaption activities , and the use , if any , of transition plans , scenario analyses or internal carbon prices ;
Disclosure in the notes of audited financial statements of quantitative and qualitative information regarding capitalized costs , expenditures expensed , charges , and losses incurred " as a result of " severe weather events and other natural conditions ;
Disclosures regarding climate-related governance and , if applicable , risk management processes ; and
Charles Still
Troy Harder
Chase Edmunds