SEC finalizes groundbreaking climate disclosure rule

The U.S. Securities and Exchange Commission (SEC) has finalized its long-awaited climate rules. The final rules have been meaningfully scaled back compared to the initial March 2022 proposal but they still impose significant new requirements for U.S. companies. The rules mandate all publicly-traded companies disclose any material climate-related risks and related risk management and oversight. For qualifying registrants, disclosure of Scope 1 and 2 emissions is required, if material.

The ruling is in line with various global disclosure frameworks that are all a response to growing investor demand for greater transparency and accountability around companies’ environmental impacts and risks. Companies should capitalize on these requirements as opportunities to secure business continuity, attract investment and ultimately bring long-term value that extends beyond compliance.

To comply with the ruling, corporates will need to carefully identify and assess climate-related risks and opportunities, monitor Scope 1 and 2 emissions, and eventually report these on an annual basis.

Download the report to learn more about:

• What the ruling means for commercial real estate 
• How it compares to existing frameworks
• How companies can prepare