Get ahead of the curve on ESG disclosures with coverage for SEC, CSRD, C3SD, SFDR, ISSB, CDP, and TCFD. Learn More
Publicly traded companies will soon be responsible for reporting climate-related risks to the SEC.
This is your home base to familiarize yourself with current regulations around mandatory ESG reporting and understand exactly what needs to be disclosed on your annual reports to stay in compliance.
While only companies that are public filers with the SEC are currently required to file annual reports on climate risk, all companies need to understand the regulations as some of the disclosures require upstream and downstream activities.
| Company type | Proposed SEC Disclosures (Including Scopes 1 & 2 GHG Emissions Data) | Scope 3 GHG Emissions Data |
|---|---|---|
Mid-Market Private Companies
|
Prepare Climate-disclosures and measure GHG Emissions to respond to questionnaires & surveys | Not required for reporting, valuable for GHG emissions reduction targets |
| Accelerated Filers Publicly traded companies required to file with the SEC with a market cap < $700 million | Prepare a strategy at least 12 months in advance to report on fiscal year 2024 (file in 2025) | Prepare a strategy at least 12 months in advance to report on fiscal year 2025 (file in 2026) |
| Large Accelerated Filers Publicly traded companies required to file with the SEC with a market cap > $700 million | Prepare a strategy at least 12 months in advance to report on fiscal year 2023 (file in 2024) | Prepare a strategy at least 12 months in advance to report on fiscal year 2024 (file in 2025) |
The United States Securities and Exchange Commission originally outlined guidance around climate risk in the 70s, again in 2010, and most expanded its standards and regulations most recently in 2023.
Included in the disclosures is a comprehensive overview of climate risks to the business and financial statements, disclosure of governance and oversight, GHG Emissions, and details of targets and goals.
An in-depth, organizational wide assessment of climate risk is required. Any risks need to be identified, a mitigation plan developed and reported.
Reporting of the governance structure and oversight of ESG and climate risks must be disclosed. The SEC wants to know how the board and management are involved.
Scope 1 (direct), Scope 2 (indirect) and Scope 3 (direct from value chain) GHG emissions must be measured and reported to the SEC.
If climate-related targets or ESG goals are released publicly, the SEC requires disclosure of plans to achieve targets.
Use our tools and resources to understand the SEC’s standardization of climate-risk disclosures and whether your ESG team is ready to report.
The regulations from the SEC on climate-related risk disclosures are very detailed. Use this infographic for a high-level overview of the current regulations.
Get the Infographic
One of the essential elements of the SEC disclosures around climate risk is GHG emissions. Corporations are required to measure Scope 1, Scope 2, or Scope 3 greenhouse gas missions. Simplify the task with Good.Lab’s GHG Calculator.
Calculate EmissionsESG regulatory requirements continue to build momentum in the U.S. and abroad. There is a clear trend toward disclosure of climate-related and performance data for companies of all sizes, public and private, mid-market and Fortune 500.
Beyond SEC compliance, Good.Lab can also help you create an effective ESG data strategy with coverage for the following disclosures and reporting requirements:
