U.S. SEC Rules

The following are the set of disclosure requirements from the SEC relating to climate change that a reporting entity needs to comply report.

• The oversight and governance of climate-related risks by the registrant’s board and management;
• How many climate-related risks identified by the registrant have had or are likely to have a material impact on its business and consolidated financial statements, which may manifest over the short-, medium-, or long-term;
• How many identified climate-related risks have affected or are likely to affect the registrant’s strategy, business model, and outlook;
• The registrant’s processes for identifying, assessing, and managing climate-related risks and whether any such processes are integrated into the registrant’s overall risk management system or processes;
• If the registrant has adopted a transition plan as part of its climate-related risk management strategy, a description of the plan, including the relevant metrics and targets used to identify and manage any physical and transition risks;
• If the registrant uses scenario analysis to assess the resilience of its business strategy to climate-related risks, a description of the scenarios used, as well as the parameters, assumptions, analytical choices, and projected principal financial impacts;
• If a registrant uses an internal carbon price, information about the price and how it is set;
• The impact of climate-related events (severe weather events and other natural conditions) and transition activities on the line items of a registrant’s consolidated financial statements, as well as the financial estimates and assumptions used in the financial statements;
• The registrant’s direct GHG emissions (Scope 1) and indirect GHG emissions from purchased electricity and other forms of energy (Scope 2), separately disclosed, expressed both by disaggregated constituent greenhouse gases and in the aggregate, and absolute terms, not including offsets, and in terms of intensity (per unit of economic value or production);
• Indirect emissions from upstream and downstream activities in a registrant’s value chain (Scope 3), if material, or if the registrant has set a GHG emissions target or goal that includes Scope 3 emissions, in absolute terms, not including offsets, and in terms of intensity; and
• If the registrant has publicly set climate-related targets or goals, information about:
  • The scope of activities and emissions included in the target, the defined time horizon by which the target is intended to be achieved, and any interim targets;
  • How the registrant intends to meet its climate-related targets or goals;
  • Relevant data to indicate whether the registrant is making progress toward meeting the target or goal and how much progress has been achieved, with updates each fiscal year; and
  • If carbon offsets or renewable energy certificates (“RECs”) have been used as part of the registrant’s plan to achieve climate-related targets or goals, certain information about the carbon offsets or RECs, including the amount of carbon reduction represented by the offsets or the amount of generated renewable energy represented by the RECs.