On March 6, 2024, the U.S. Securities and Exchange Commission (SEC) adopted its landmark climate disclosure rule, The Enhancement and Standardization of Climate-Related Disclosures for Investors. The rule responds to investors’ need and overwhelming demand for clear, consistent, and comparable climate reporting from companies. Standardized disclosures in financial filings will bring significant improvements to the current patchwork of voluntary disclosures.
Get ready for standardized climate disclosure
The U.S. Securities and Exchange Commission now requires public companies to disclose their material climate-related risks and the measures they are taking to manage those risks. Ceres can help you understand the rule and its impact.
What does the rule mean for you?
The rule requires transparency on how material climate-related risks impact companies’ financial and operational performance and how companies are integrating climate into their broader strategy and governance.
Better data
Under the rule, standardized information will enable investors to manage physical and transition risks to their portfolios, prioritize investment stewardship and engagement with companies, and identify investment opportunities.
Clear expectations
The rule provides consistent and clear reporting expectations for companies—and helps them better align with the global regulatory landscape and shifts in market demand.
Global alignment
This rule brings the U.S. closer to global peers who have mandated TCFD-aligned climate-related financial disclosures.
Market protection
Climate change is a systemic financial risk that is already impacting nearly every facet of the economy through physical and transition-related risks. Comprehensive climate information is vital to protect investors; maintain fair, efficient, and orderly markets; and facilitate capital formation.
Learn more
Learn more about the rule in our summary document and comparison of the final rule vs. the proposal. If you have questions, contact Randi Mail at [email protected].
"Investors are already demanding much of the climate-related information that the rule requires. The rule is designed to bring further consistency, comparability, and reliability to those disclosures."
Erik Gerding
Director, SEC Division of Corporation Finance
Updates on our advocacy
Ceres is a long-time advocate for standardized, mandatory climate disclosure. We rallied company and investor support, and engaged directly with the SEC, to encourage adoption of the strongest, most workable rule possible.
"Now it is time for the SEC to protect the needs of investors and our economy by requiring material, comprehensive, and comparable climate disclosures."
Betty T. Yee
Former California State Controller
countries have publicly expressed their intention to align with ISSB standards for mandatory climate disclosure, while the European Union has enacted its own mandatory disclosure standards that will apply to thousands of non-EU companies.
%
of Americans want U.S. companies to be transparent about their impact on people and the planet, according to a poll conducted by Just Capital.
$TN
in assets managed by investors supporting mandatory climate risk disclosure.
"Capital markets need comprehensive, decision-useful data from all enterprises facing material climate risks and opportunities."
Jeff Eckel
Chairman, HASI
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