US SEC Climate Disclosure Rules: What Global Exporters Need to Know
Breakdown of mandatory greenhouse gas disclosure rules for US-listed companies and international supply chain vendors.
The US Securities and Exchange Commission (SEC) has finalized rules mandating climate-related disclosures for public companies registered in North American markets. This rule requires companies to integrate material physical and transition climate risks directly into their annual reports (Form 10-K).
Key Highlights of the SEC Rule
- Material GHG Disclosures: Large Accelerated Filers (LAFs) must report Scope 1 and Scope 2 GHG emissions if deemed financially material.
- Financial Statement Notes: Severe weather events, natural disasters, and carbon offset expenditures must be itemized in audited financial statement footnotes.
- Phased Attestation Mandates: Disclosed emissions require limited assurance initially, escalating to reasonable assurance (full audit) over subsequent filing cycles.
Impact on Global Vendors & Exporters
International suppliers providing components or raw materials to US public companies will face increased data requests to satisfy climate risk governance and Scope 1 & 2 audit requirements.
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