A closer look: Securities and Exchange Commission votes to implement climate-related disclosure requirement
AECOM - Environmental Services
For over 50 years, AECOM has been helping clients solve their most pressing environmental challenges.
On Monday, March 21, the Securities and Exchange Commission (SEC) voted to propose a broad and consequential rulemaking that would require public companies to disclose climate-related information. The proposal would require all public companies to align with the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD) by disclosing directly and indirectly generated greenhouse gas emissions; discussing physical, transition and financial climate-related risks; describing company oversight of those risks, and providing additional information about any stated targets, goals and transition plans.
The proposed rules would apply to both domestic and foreign private issuers and would be phased in for all registrants, with the compliance date dependent upon the status of the registrant. The proposed rules have been modelled in part on the TCFD’s recommendations and draw upon the GHG Protocol.
There would be a “phase-in” period which indicates that the proposed rules would be applicable in 2024 for the Fiscal Year 2023 for large, accelerated filers, and 2025 for the Fiscal Year 2024 for accelerated filers. Registrants subject to the proposed Scope 3 disclosure requirements would have one additional year to comply with the disclosure requirements.
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The proposed rules are open for comments, and the comment period will remain open for 30 days after publication in the Federal Register or 60 days after the date of issuance and publication on sec.gov, whichever period is longer.
How AECOM can help
Our ESG advisory and corporate governance services, with support from our air emissions and climate resiliency teams, can help our clients implement the TCFD recommendations to bridge their organizational strategy for the governance and management of both physical and transition climate-related risks with the technical, scientific underpinnings that are needed to produce transformative change and develop an enterprise-wide climate-focused mindset.
Reach out to us to learn more about the proposed amendments and how AECOM can help position your organization for compliance.