Compliance with the SEC’s climate disclosure rule

In recent years, there has been an increase in climate-related risks, which has, in turn, caused the U.S. Securities and Exchange Commission (SEC) to pay more attention to this particular area. With this in mind, Baker Tilly partner Mallory Thomas recently sat down with Sustain.Life to discuss corporations’ compliance with the SEC’s climate disclosure rule.  

On the podcast, Thomas discussed topics such as: 

  • The SEC’s reporting requirements and their financial impacts, including the specific distinction between disclosing governance practices performed by the board and management  
  • The contrast between the S-K regulations and S-X regulations and what is included in the various filings and reports 
  • Examples of internal controls that need to be in place to ensure reliable systems and accurate data for reporting 
  • Instances where the rule does and doesn’t follow the task force on climate-related financial disclosures (TCFD) 
  • The impact of climate-related information on corporate filers’ day-to-day operations and preparation for their external audit 
  • Steps that corporate filers should take to ensure compliance with the rule 
  • The distinction between limited assurance and reasonable assurance 
  • The difference between assurance of financial data and the assurance surrounding non-financial data, including emissions- and climate-related data 
“This has to be cross-functional,” Thomas cautioned as part of the discussion. “You need to make sure you have the right team in place, and then that you evaluate the processes you already have in place … and you can incorporate the climate risk piece into that. So, you’re not creating a separate silo of reporting and a whole different process. That’s an important piece of this.” 

Click on the video to watch the full discussion and contact Mallory Thomas to learn more. 

Mallory Thomas

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