U.S. companies will be required to disclose emissions, climate-related goals and risk assessment information under a released draft rule from the Securities Exchange Commission (SEC).
SEC aims to help organizations reduce costs and increase investor knowledge about climate risk and whether companies are reducing the full range of their emissions in line with the Paris climate agreement's 1.5-degree goal. The rule requires climate disclosure regarding Scope 1, 2 and 3 emissions disclosures; any climate progress; climate transition plans, if any; climate-related risk assessment information, including transition risk; and climate governance information, among other topics.