Regulatory round-up

The US Securities and Exchange Commission’s much-anticipated proposal to impose climate disclosures on listed companies aligns the US better with many other jurisdictions including the EU, the UK, Switzerland and Brazil noted SEC chair Gary Gensler. 

Under the rules, US listed companies will be required to disclose scope 1 and 2 emissions – those directly produced by businesses and those deriving from their energy needs, respectively. The more challenging scope 3 emissions, which relate to supply chains, would need to be disclosed only when considered material or included in corporate climate targets. While scope 1 and 2 would need to be verified by a third party and be disclosed from 2024, there is no such requirement for scope 3, which would be reported in 2025. Companies, including registered foreign entities, would include the new information in their annual SEC filings.