Understanding the SEC’s climate rule
Defining Issues | April 2024
Top 10 questions on the final rules – covering scope, Reg S-X and Reg S-K requirements, effective dates and more.
On April 4, 2024 the SEC stayed the climate rule pending judicial review – read our web article.
The specific events that culminated in adoption of the climate rule on March 6, 2024, began in March 2021 when the SEC requested public input on climate-related disclosures to help evaluate its then current rules and guidance. This was followed in March 2022 by issuance of the SEC’s proposed climate reporting rules. Over the last two years, the SEC considered more than 4,500 unique comment letters (over 20,000 letters in total) as it drafted its final rules.
Applicability
SEC Release Nos. 33-11275 and 34-99678
- Registrants with Exchange Act reporting obligations pursuant to Exchange Act Section 13(a) or Section 15(d), and companies filing a Securities Act or Exchange Act registration statement
- Includes Foreign Private Issuers; excluding Canadian issuers reporting under the Multijurisdictional Disclosure System and asset-backed issuers
Phased transition
The following table summarizes the compliance dates for registrants based on filer status for both annual reports and registration statements that are required to include information for the full fiscal year indicated in the table.
For fiscal years beginning in calendar year: | LAFs1 | AFs2 | NAFs3, |
Financial statement disclosures | 2025 | 2026 | 2027 |
| Climate risk disclosures | |||
Climate risk disclosures, except those below | 2025 | 2026 | 2027 |
Disclosures in the Specific quantitative disclosures section | 2026 | 2027 | 2028 |
| GHG emissions | |||
Scopes 1 and/or 2 disclosures | 2026 | 2028 | N/A |
Limited assurance | 2029 | 2031 | N/A |
Reasonable assurance | 2033 | N/A | N/A |
Inline XBRL | 2026 | 2026 | 2027 |
Notes: 1. Large accelerated filers 2. Accelerated filers (except smaller reporting companies (SRCs) and emerging growth companies (EGCs)) 3. Non-accelerated filers | |||
Top 10 questions
- Who and what are in scope?
- At a glance, what’s required where?
- What financial statement disclosures are required?
- What GHG emissions disclosures are required?
- What climate risk disclosures are required?
- How do the different disclosures connect?
- What are the implications for controls?
- When must registrants comply?
- How do the rules compare to other frameworks?
- What do you need to do now?
Download the document :
Understanding the SEC’s climate rule
Download PDFExplore more
Resource
SEC stays its climate rule pending judicial review
No change in SEC’s position regarding its authority; no effect on companies preparing for compliance with other rules.
Resource
SEC mandates climate reporting and assurance
SEC mandates climate reporting and assurance: With its final climate rule, the SEC has responded to concerns while crafting meaningful disclosures for investors.
Insight
Comparing sustainability reporting requirements
Comparing requirements from the ISSB, EU and US SEC
Resource
Proposed amendments to California climate laws
Climate disclosures remain in place, but longer lead times until adoption and certain reliefs have been proposed.
Meet our team
Subscribe to stay informed
Receive the latest financial reporting and accounting updates with our newsletters and more delivered to your inbox.
Accounting Research Online
Access our accounting research website for additional resources for your financial reporting needs.