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Summit Perspective: Breaking Down the SEC's New Climate Disclosure Rule - What You Need to Know



On March 6, the U.S. SEC passed the long-awaited climate disclosure rule. This rule is a significant stride towards transparency and accountability in ESG reporting. At Summit Strategy Group, we're focused on what this means for ESG reporting and compliance.


Early Insights:


  • Scope 3 Reporting Dropped - The SEC has removed the requirement for Scope 3 emissions reporting, addressing data reliability and compliance cost concerns.

  • Focused Scope 1 & 2 Reporting - Requirements are now tailored to large accelerated and accelerated filers, easing the reporting burden for smaller companies.

  • Phased Implementation - A gradual rollout begins with large filers in fiscal year 2026, extending to accelerated filers by 2028, facilitating a smoother transition.

  • Materiality and Climate-Risk Disclosures: Companies must assess the materiality of their Scope 1 and 2 emissions and disclose significant climate-related risks.


What This Means – Looking Forward:


  • Stay Ahead - Prepare for compliance with Scope 1 and 2 reporting requirements and proactively track regulatory developments in all jurisdictions where you operate, such as California’s SB 253 and EU's CSRD.

  • Assess and Disclose - Perform materiality and climate risks analyses and integrate these findings into your strategic planning and reporting.

  • Governance and Preparation: Strengthen governance structures to oversee climate risk management.


The SEC's rule change marks a pivotal moment in corporate climate accountability. Summit Strategy Group is here to support your journey through these regulatory changes, offering expertise to align your reporting with the new rules.

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