When will the SEC Climate disclosure rule be applicable?

The intention behind this proposed rule is to establish a uniform framework for climate-related disclosures, enabling investors to gain a clearer understanding of the risks and potential impacts on the business operations and financial health of the companies in which they invest.

The SEC's climate disclosure rule remains under consideration, with the commission now anticipating the release of its finalized regulation in April 2024. This rule mandates companies to disclose climate-related risks, including scope 1, scope 2, and scope 3 emissions, alongside their practices for managing these risks.