BREEAM's US Director Responds to March 2024 SEC Ruling

The Security and Exchange Commission’s (SEC) recent climate disclosure rule serves as an inflection point bringing rigor and standardization to climate-related emissions reporting. While perhaps not as all-encompassing as some might have hoped with the exclusion of Scope 3 disclosure requirements, the rule underscores the critical importance of materiality and the influence of climate-related factors on financial performance.

Moving forward, this ruling will help set a standard for the quality and rigor of data and disclosure stakeholders will ultimately come to expect — a standard that all companies, irrespective of their inclusion in this ruling, will need to embrace to stay competitive and meet growing investor and finance demands for evidence of effective climate risk management.