The AICPA and the Center for Audit Quality (CAQ) has published a new resource summarizing the 886-page rule on climate-related disclosures adopted last week by the SEC.
The "Summary of The Enhancement and Standardization of Climate-Related Disclosures for Investors SEC Release Nos. 33-11275 and 34-99678" provides a valuable overview of the rule, which mandates a significant set of new disclosures — via both Regulation S-X and Regulation S-K — as early as fiscal year beginning 2025.
The summary covers what all companies registered with the SEC, including foreign private issuers, must report in S-K (nonfinancial statement) and S-X (financial statement) disclosures, including what a subset of registrants must report related to greenhouse gas emissions.
The new disclosure requirements under Regulation S-X say that companies must report, among other things, the effects of "severe weather events and other natural conditions" if they meet a certain threshold of financial impact. Read more.