SEC’s Proposed Climate Disclosure Rules
SEC’s Proposed Climate Disclosure Rules are regulations introduced by the U.S. Securities and Exchange Commission (SEC) in March 2024 that would require publicly traded companies to disclose climate-related risks and their potential impact on financial performance. These rules aim to increase transparency by mandating companies to report on GHG emissions, climate-related risks, and how they are managing these risks in their governance and strategy.
The disclosures would also include information about the potential financial impacts of climate change, such as physical risks from extreme weather events and transition risks from shifting to a lower-carbon economy. The goal is to provide investors with consistent, comparable, and decision-useful information regarding how climate change may affect a company’s financial health and long-term sustainability.