Ethicast Reacts: Understanding the SEC's Climate Risk Rules

After two years and more than 24,000 comments from companies, legislators, and trade groups, the U.S. Securities and Exchange Commission has finally approved The Enhancement and Standardization of Climate-Related Disclosures for Investors, its long-anticipated rules that require certain SEC registrants to report their carbon emissions and climate risks.

The rules jettisoned a provision that would have required companies to report their Scope 3 (supply chain) carbon emissions as well as only requiring companies to disclose what they consider to be "material" Scope 1 and 2 emissions.

Even as the rules face legal challenge, Ethisphere’s Chief Strategy Officer and Executive Chair, Erica Salmon Byrne offers her insights on how these rules will impact organizations and how they can prepare now to comply with them.

• 2:38: A quick rundown of the rules themselves
• 4:03: Removing the Scope 3 disclosure requirement
• 9:57: How this rule advances ESG reporting & disclosure
• 11:07: Why companies with ESG programs have a head start on this
• 12:45: Bonus! Insights on the DOJ whistleblower announcement

Full text of The Enhancement and Standardization of Climate-Related Disclosures for Investors: https://www.sec.gov/files/rules/final/2024/33-11275.pdf

For a host of resources providing helpful intelligence on the wide array of regulatory issues in today’s ethics and compliance environment, please visit ethisphere.com/resources.