Climate Financial Disclosures

Understanding Climate Financial Disclosures

With SEC Mandate on Horizon, Companies Must Act Now

The US Securities and Exchange Commission (SEC) has proposed a new rule called “The Enhancement and Standardization of Climate-Related Disclosures for Investors” that will require companies registered at the SEC to mandate climate-related information in their registration statements and annual reports. While the rule is not yet in effect, the message is clear: mandatory emissions management, climate risk assessment, and disclosure is coming for US companies.

Corporations will need to identify, assess, manage, and report climate-related risks — and the climate scientists at DPI can lead your company through that process.

Changing climate presents risks to operations and investments. It also presents opportunities to design best practices and avenues for new directions for corporations to advance their portfolios and growth. Reporting climate risks and opportunities for corporations and companies to their stakeholders, shareholders, public, and SEC will require them to articulate how they identify, assess, research, implement and communicate climate risks related to both physical and transition.

Five steps a company can take infographic

Five steps a company can take


  1. Create benchmarks, identify risks
      • Collect information on the corporation’s level of climate disclosure status.
  2. Asses emissions
      • Quantify corporate HG emissions inventory standards using GHG Protocol Corporate Standard based on Kyoto Protocol for seven GHGs for sector-specific or cross-sector activities.

  3. Continuously improve
      • Design strategies to further improve possibilities for climate-related financial disclosures wherein the corporations can further reduce GHG emissions in operations, supply chain and services (across the board; end-to-end).

  4. Communicate and report activities
      • Report climate action related to physical and transition risks and plans to mitigate the climate risks.

  5. Strategize for climate risks
      • Implement detailed strategy to address physical and transitional risks for corporations sites, infrastructure, personnel, etc. for short-term as well as long-term aligned with corporation vision and goals.