Navigating the SEC's Climate Disclosure Rule and Cross-Jurisdictional Reporting

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This chapter explores the drivers behind the SEC's climate disclosure rule, emphasizing consistency and harmonization in reporting frameworks. It delves into the challenges faced by companies adhering to various disclosure regulations, discusses the assurance process for scope 1 and scope 2 disclosures, and addresses legal implications and potential arguments against the rule.

The US Securities and Exchange Commission on March 6 finalized a long-awaited rule requiring thousands of publicly traded companies to disclose certain climate-related information. The final rule takes a narrower approach than what the SEC proposed in 2022; it also marks a significant change in the level of climate-related information that publicly listed companies must disclose in the US.

In this episode of the ESG Insider podcast, we explore key components of the SEC rule and its implications for investors and companies — as well as how it fits in the broader global climate disclosure landscape.

We talk with Cynthia Hanawalt, a Director at the Sabin Center for Climate Change Law, a think tank at Columbia Law School; she gives us an overview of the rule's requirements.

We speak to Bruno Sarda from professional services company EY, where he focuses on climate change and sustainability services. Bruno says a key message from the rule is that “climate risk is financial risk ... companies need to be ready to both measure, manage and communicate that risk."

We hear from Kristina Wyatt, Deputy General Counsel and Chief Sustainability Officer at carbon accounting software company Persefoni, about how the rule fits into the broader global disclosure landscape.

And to understand what’s on the horizon for the rule, we hear from Elizabeth Dawson, a Partner at law firm Crowell & Moring where she is a leader on the ESG advisory team and Chair of the Sustainability Committee.

Read research from S&P Global Sustainable1 about the current US landscape for corporate climate disclosure: https://www.spglobal.com/esg/insights/featured/special-editorial/after-sec-rulemaking-assessing-the-us-climate-disclosure-landscape

Listen to the podcast episode we released when the SEC proposed its climate disclosure rule in 2022: https://www.spglobal.com/esg/podcasts/unpacking-implications-of-the-sec-s-proposed-climate-disclosure-rule

This piece was published by S&P Global Sustainable1, a part of S&P Global.

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