SEC Climate Risk Disclosures & Reporting

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.

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Timeline & Phase In Period

  • The SEC’s Enhancement and Standardization of Climate-Related Disclosures for Investors is still in proposal form and has not yet been passed into law.coming into effect is anticipated to be as follows:

  • 2016

    SEC forms the Task Force on Climate-related Financial Disclosures (TCFD)

  • 2020

    SEC forms the Climate and ESG Task Force

  • Feb 24, 2021

    SEC Chair issues directive to enhance its focus on climate-related disclosures

  • Mar 21, 2022

    SEC releases proposal for climate-related disclosures

  • June 17, 2022

    Comments on SEC proposal due

  • Apr 2023

    SEC indicates it will soon issue a ruling on climate-related disclosures

  • Apr – Dec 2023

    SEC climate-related disclosures requirements will take effect

  • 2024

    Qualifying businesses will need to disclose climate-related risks according to SEC standards for the 2023 fiscal year

Who Needs to Report on ESG and Climate-Related Risks

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
  • Planning IPO, SPAC or seeking funding/acquisition
  • A supplier to a public company
  • Operating in the EU
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)

SEC Climate-Related Disclosures Overview

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.

Climate-related Risk Assessment

An in-depth, organizational wide assessment of climate risk is required. Any risks need to be identified, a mitigation plan developed and reported.

Good.Lab Climate Risk Assessment

Governance of Climate-related Risk

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.

Good.Lab Program Building

GHG Inventory Assessments

Scope 1 (direct), Scope 2 (indirect) and Scope 3 (direct from value chain) GHG emissions must be measured and reported to the SEC.

Good.Lab GHG Emissions Calculator

Climate-Related Targets and Goals

If climate-related targets or ESG goals are released publicly, the SEC requires disclosure of plans to achieve targets.

Good.Lab ESG Target Setting

SEC Reporting and ESG Resources

Use our tools and resources to understand the SEC’s standardization of climate-risk disclosures and whether your ESG team is ready to report.

Screen Shot 2022-10-12 at 1.42.49 PM
Navigating the SEC’s Climate Disclosures

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
GHG Calculator

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 Emissions

Other ESG Regulations

ESG 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: 

  •  SEC
  • CSRD
  • C3SD
  • SFDR
  • ISSB
  • TCFD
  • CDP

Get Climate Risk Compliant

Learn how Good.Lab’s reporting software and expert guides can get you SEC reporting ready.

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