Navigating SEC Climate Disclosure: How To Future-Proof Your Company

In her Forbes article, Suzanne Ogle, President and CEO of the Southern Gas Association, explores the SEC’s new climate-related disclosure requirements. After extensive deliberation and legal challenges, the SEC’s rule, titled “The Enhancement and Standardization of Climate-Related Disclosures for Investors,” mandates that public companies disclose various aspects of their climate risk governance.

Key aspects of the rule include the exclusion of Scope 3 disclosure requirements, which had raised concerns about reporting costs and reliability. However, state-specific regulations like California’s may still require it. The final rule preserves three main components:

  1. Weather and Material Effects: Large companies must comply by fiscal year 2026, including detailed climate risk disclosures in their annual filings, covering severe weather events and carbon offsets.
  2. Attestation Requirements: Significant filers must disclose Scope 1 and 2 GHG emissions and provide attestation reports, with large filers meeting assurance requirements by fiscal year 2033.
  3. Footnote Disclosures: Financial statements must include the impact of severe weather events, carbon offsets, and the material impacts of climate-related targets on business operations.

The rule applies to nearly all SEC registrants and requires them to detail board oversight of climate-related risks. Companies should assess their readiness for these requirements, as compliance can give them a competitive advantage.

For more detailed insights and strategies on navigating these new regulations, read the full article on Navigating SEC Climate Disclosure: How To Future-Proof Your Company