The U.S. Securities and Exchange Commission (SEC) has officially approved long-awaited climate-related disclosure rules for U.S. public companies. These rules mandate that companies disclose critical information in their annual reports and registration statements. Specifically, they must address climate risks, outline mitigation plans, assess the financial impact of severe weather events, and, in certain cases, report greenhouse gas emissions stemming from their operations. This marks a significant step toward greater transparency and accountability in corporate climate reporting.

A lack of US climate reporting regulation may pose negative side effects to US companies in the long run as they will have to adhere to stronger EU compliances.

Yesterday, The U.S. Securities and Exchange Commission (SEC) launched their proposal of a new set of rules to enhance and standardize climate-related disclosures for investors.