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Proposed SEC Climate-Related Disclosures Rule

The SEC recently released the long-awaited proposed rule which will require public companies to disclose climate-related information in their annual 10-K filings.

There are three key pieces of climate-related information that the registrants will have to provide in their registration statement and annual reports:

  1. Climate-related risks that are reasonably likely to have a material impact on the registrant’s business, operations, or financial condition.
  2. The registrant’s greenhouse gas (GHG) emissions.
  3. Large accelerated and accelerated filer companies will need a separate attestation report over Scope 1 and Scope 2 emissions.

EisnerAmper’s dedicated team of environmental, social, and governance (ESG) professionals delivers tailor-made solutions to address client needs in response to the proposed rule.

We assist clients in collecting information, assessing greenhouse gas (GHG) emissions, and reporting for Scope 1, 2, and 3.  For large accelerated and accelerated filers, EisnerAmper also provides immediate review for Scope 1 and 2 emissions, and we stand ready when our clients begin Scope 3.

ESG and Sustainability Service Offerings:

  1. Assessment of Client’s SEC Filing Readiness Including Design, Implementation, and Monitoring of a Transition Plan
    • Gap analysis using the Task Force on Climate-Related Financial Disclosures (TCFD) Framework and SASB Standards as a benchmark. While the TCFD (and the SEC consequently) focuses on financial materiality, there are many opportunities on the sustainability side to impact the bottom line.
    • For non-attest clients, we help establish and implement strategic roadmaps to help clients achieve goals including creating metrics, limits, and reporting frameworks (e.g., SASB, TCFD) for both investors and regulators.
    • Training on TCFD, at any level.
  2. Independent Verification and Assurance (for attest clients):
    • TCFD Reports, including any industry-specific supplements.
    • Specific climate-related financial statement metrics and related financial statement disclosures included in 10-K and registration SEC filings.
    • SASB and sustainability reports.
    • GHG emissions report (Scope 1 and 2, and Scope 3 depending on the size of the company).

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