Climate-Related Disclosures for Investors

The Securities and Exchange Commission (SEC)

The Securities and Exchange Commission (SEC) has published its final rules for the Enhancement and Standardization of Climate-Related Disclosures for Investors, which aim to improve the consistency, comparability, and reliability of climate-related information for investors, based on the recommendations from Task Force on Climate-related Financial Disclosures (TCFD) framework and comments received on the draft.  


Climate-Related Disclosures for Investors

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Executive summary

The SEC has published the final rules for the Enhancement and Standardization of Climate-Related Disclosures for Investors. The new rules follow the recommendations of the TCFD and include significant changes to the draft rules, published in May 2022. Companies will be required to disclose aspects related to the governance and management of climate-related risks, their financial impact, greenhouse gas (GHG) emissions, defined targets and their transition plans.

Following a proportionality criterion, the SEC establishes staggered and progressive compliance dates, based on the size of the companies and various criteria, such as the materiality of the financial impacts, the level of assurance required on GHG disclosure, or the submission format.

Main content

  • Companies are required to disclose any climate-related risks that have had a material impact or are likely to have a material impact on the company, including on its business strategy, results of operations or financial condition.
  • In relation to governance and risk management disclosures, companies should describe the board’s oversight of climate-related risks and the role of management in assessing and managing these risks.
  • Companies must disclose any climate-related target or goal if such target or goal has materially affected or is likely to materially affect the registrant’s business, results of operations, or financial condition.
  • Disclosure of GHG emissions metrics is limited in the final version, with the SEC establishing materiality and proportionality criteria. Thus, the final rule requires disclosure of Scope 1 and 2 emissions only by large accelerated filers (LAFs) and accelerated filers (AFs) that are not small reporting companies (SRCs) or emerging growth companies (EGCs), on a phased-in basis, if such emissions are material.

Download the technical note on Climate-Related Disclosures for Investors.