Corporate Climate Disclosures: Roadmap for the Journey to Mandatory Reporting

Abstract Description: In 2024, sweeping new climate-related disclosure requirements were adopted in the US in SEC regulations and signed into law in the state of California. In March 2024, the U.S. Securities and Exchange Commission (“SEC”) finalized sweeping new climate-related disclosure requirements for large publicly traded companies covering climate-related financial risk and greenhouse gas emissions (GHG). Two California climate disclosure bills were signed into law in 2023, both of these were clarified by amendment in 2024. These California requirements for public disclosures cover corporate climate-related financial risk (SB 261), and GHG emissions/targets (SB 253). California SB 261 and SB 253 were amended by SB 219 in 2024. SEC paused implementation of their regulations while court challenges are resolved. California’s climate disclosure laws are also subject to court challenges but are still in effect.

This presentation will provide the highlights of these new disclosure requirements for climate disclosures, the standards to be applied, and the related audit (assurance) requirements for each. Carbon accounting expectations, materiality considerations and what to do now to prepare will be discussed.
An update on the net impact of timely court decisions affecting each of the SEC and California requirements will be included. To frame a relevant roadmap for companies affected, we will include a discussion of the impact of similar disclosure requirements under the CSRD rules of the European Union, and how supply chains in the US are being impacted. The key takeaways will be a roadmap for the journey to mandatory reporting and reflections upon the relationship of these disclosures to US firms remaining globally competitive.