What is the SEC Climate Rule?

The US Securities and Exchange Commission (SEC) has adopted rules aimed at enhancing and standardizing climate-related disclosures among public companies and in public offerings. These rules are crafted to furnish investors with comparable, consistent, and reliable information concerning the financial impacts of climate-related risks.

Key SEC Climate Disclosure Requirements for Affected Companies:

Climate-related Risks

Identification of climate-related risks that have or are likely to have a material impact on the business.

Mitigation and Adaptation Actions

Description of actions undertaken to mitigate or adapt to material climate-related risks.

Climate-related Commitments and Strategies

Disclosure of climate-related commitments, strategies, and their financial implications.

Emissions Reporting

Reporting of Scope 1 and 2 emissions (applicable to large accelerated and accelerated filers only) with phased assurance.

ensogo is here to guide you through the intricacies of these SEC climate disclosure rules, supporting your compliance and enabling you to effectively communicate your sustainability efforts to stakeholders.

How ensogo empowers SEC compliance


Identify or refine material issues using ensogo’s industry-specific expertise and data-driven insights


Outline your climate-risk strategy, manage programs, assign responsibilities, track progress, and more in ensogo

Collect & Report

Collect data aligned with your climate strategy and SEC requirements for easy review and reporting

SEC Frequently asked questions

Who does the SEC climate disclosure rule apply to?

 The SEC rules apply to companies that file registration and annual reports with the SEC. This includes public companies, certain asset-backed issuers, and foreign private issuers.

What is materiality in the SEC climate disclosure rule?

The SEC describes materiality in the new rule as a matter that has “a substantial likelihood that a reasonable investor would consider it important when determining whether to buy or sell securities”. Additionally, the SEC explains that it pertains to a matter where “a reasonable investor would view the omission of the disclosure as having significantly altered the total mix of information made available.” The SEC climate disclosure rules did not adopt double materiality.

What is the timeline for SEC climate disclosure?

The SEC is implementing a phased approach to the rules. For most disclosures, large accelerated filers will commence in 2026 (for FY 2025), accelerated filers will begin in 2027 (for FY 2026), and other affected filers will start in 2028 (for FY 2027).

Other disclosures, such as those related to material expenditures and GHG emissions, will occur one year later. Only large accelerated filers and accelerated filers will be required to disclose GHG emissions.

Request a demo today to discover how ensogo can help you collect and manage ESG data more efficiently and advance your sustainability initiatives.