ESG INTEL
...On SEC Climate Change Disclosure Rule - New Anticipated Approval Date
Written by Leslie Wong
The U.S. Securities and Exchange Commission’s (SEC) proposed Climate Change Disclosure Rule, which aims to enhance and standardize climate-related disclosures for investors, has generated significant debate since it was announced on April 11, 2022. Despite a tumultuous journey, including extensions and reopening of the comment period, however, the rule is expected to be finalized this fall.
The SEC “Final Action” is a final vote on a rule, not the finalization of the rule. In other words, following a vote in favor—which is heavily expected as most of the SEC Commissioners are in support—the rule must still be published in the Federal Register for 60 days before it’s enacted. The earliest the SEC Climate Change Disclosure Rule can go into effect is in December 2023, with the possibility of it happening in January 2024.
Following the final vote, information related to the new climate disclosure requirements, who is required to report, and initial due dates for the disclosures should be made available. Based on the draft version of the rule, publicly traded companies should expect to disclose information about their physical climate risks, energy transition risks, and any climate-related targets. Companies will likely be expected to disclose greenhouse gas (GHG) emissions directly generated by their operations (scope 1), GHG emissions associated with energy consumption (scope 2), and potentially indirect emissions generated across their value chain (scope 3).
To discuss how this rule might impact your projects and how Langan can help you meet these new reporting requirements, please contact your Langan Project Manager or:
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Leslie Wong
Senior Associate
lwong@langan.com
281.675.7911
Rory Johnston, PE, BCEE
Managing Principal
rjohnston@langan.com
973.560.4978
