The SEC announced that it will consider whether to adopt its final rule for the Enhancement and Standardization of Climate-Related Disclosures for Investors at an open meeting scheduled for March 6, 2024. While uncertainty remains about which elements of the originally proposed rule will survive, it is anticipated that, at a minimum, the final rule will require public companies to provide annual disclosure about material climate-related risks and related risk management, strategy and governance processes, as well as information about climate-related targets and goals and Scope 1 and Scope 2 greenhouse gas emissions. It has been widely reported that the final rule will not include a requirement for Scope 3 greenhouse gas emissions reporting but will otherwise largely track the recommendations of the Task Force on Climate-Related Financial Disclosures.

Orrick has been helping companies develop climate reporting playbooks and serving as an outsourced sustainability reporting function with respect to various climate-related reporting requirements and can provide practical insights regarding how companies can integrate the requirements of the final rule into their internal sustainability reporting systems and prepare for disclosure. Stay tuned for Orrick’s analysis following the expected adoption of the final rule, including our Climate Advisor, Avani Panchal’s, view of how the final rule will impact existing climate-related data collection and management activities.

Want to watch the meeting? The SEC’s notice provides details on how to do so.