What is climate disclosure?
Climate disclosure references the Climate Risk Disclosure Act of 2019, requiring public companies to disclose more information about their exposure to climate-related risks, which will help investors appropriately assess those risks. However, climate disclosure became a hot topic before the Act passed. It became a topic of conversation for investors in the 1970s when the SEC, Securities and Exchange Commission, initially launched its efforts to provide investors with information about the potential environmental risk associated with public companies.
For many years the SEC provided additional related guidance to climate disclosure. However, on March 21, 2022, the SEC went beyond guidance, when they proposed a significant rule adjustment. The SEC stated under the proposed rules changes, accelerated filers and large accelerated filers would be required to include an attestation report from an independent attestation service provider covering Scopes 1 and 2 emissions disclosures, with a phase-in over time, to promote the reliability of GHG emissions disclosures for investors. The proposed rules would include a phase-in period for all registrants, with the compliance date dependent on the registrant’s filer status, and an additional phase-in period for Scope 3 emissions disclosure. For support and additional information, explore our Annual Meeting and Proxy Solutions.