top of page

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.


bottom of page