SEC final rules on carbon accounting and climate-related disclosures approved

SEC final rules on carbon accounting and climate-related disclosures approved

On March 6, 2024, the US Securities and Exchange Commission (SEC) adopted final rules to require registrants (US companies) to disclose certain climate-related information in registration statements and annual reports.

A significant shift in sustainability reporting

The final SEC Climate Disclosure Rule marks a significant shift in the sustainability reporting landscape, prompting companies to adapt while safeguarding their overall business strategies. Here’s a concise overview of the key takeaways and initial industry reactions.

Got questions about ESG or sustainability?

Book a free discovery call and discuss with one of our sustainability experts!

Book a free and nonbinding discovery call to discuss your questions with one of our sustainability experts, and learn how we can help you.

The key takeaways of SEC final rules on carbon accounting and climate-related disclosures

Key takeaways are:

  • New Disclosure Requirements: Large and accelerated filers must disclose material Scope 1 and/or 2 greenhouse gas (GHG) emissions, with initial disclosures allowed in Q2 Form 10-Q or an amended Form 10-K.
  • Scope 3 Excluded: While initially proposed, Scope 3 reporting is not mandated, but remains relevant for many companies due to other regulations.
  • Offsets & RECs: Companies must disclose the material financial impact of using offsets or renewable energy certificates (RECs) to meet climate goals.
  • Phased-in Assurance: Initial GHG disclosure assurance will be “limited” (3 years), transitioning to “reasonable” assurance within 7 years.
  • Climate-related Risk Disclosure: Aligns with the Task Force on Climate-Related Financial Disclosures (TCFD) framework, requiring identification, management, and oversight of material climate risks.
  • Financial Statement Disclosures: Companies must disclose financial information related to severe weather events and other natural conditions, including capital expenditures, operating expenses, and losses, exceeding a 1% threshold.

Companies already complying with the EU’s CSRD regulations may be largely prepared for the SEC rule due to significant overlap, potentially leading reduced burden across jurisdictions.


The SEC ruling can be accessed here – 

About NordESG

NordESG is an advisory firm helping corporates develop, articulate and execute their ESG and sustainability strategies. Our work includes sustainability performance reporting support under various ESG frameworks, strategy development or conducting materiality assessments. By doing so, we help businesses meet their disclosure compliance requirements like CSRD but also help them proactively communicate their strategy to other stakeholders like investors, customers and local communities in which they operate. Our work is focused mainly on Europe and North America.

Discovery Call

Book a free discovery call below


Get in touch via email


This communication is marketing material. The views and opinions contained herein are those of the author(s) on this page, and may not necessarily represent the views expressed or reflected in other NordESG communications or strategies.

This material is intended to be for information purposes only. It is not intended to provide and should not be relied on for accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions. Information herein is believed to be reliable, but NordESG does not warrant its completeness or accuracy.

Some information quoted was obtained from external sources NordESG consider to be reliable. No responsibility can be accepted for errors of fact obtained from third parties, and data and information contained in this communication may change in the future. The views and opinions expressed in this communication may change.