United States Sustainability Reporting Regulation
The Securities and Exchange Commission (SEC)’s climate disclosure rule was issued in final on March 6, 2024, and reflects feedback received from stakeholders in response to the draft rule.
Who’s impacted?
All SEC registrants, except asset-backed issuers and certain Canadian companies who file under the Multijurisdictional Disclosure System (MJDS).
What’s the latest?
The SEC’s final Climate Rule was issued on March 6, 2024. However, in response to pending litigation against the Rule, on April 4, 2024, the SEC issued a stay order of the Rule, pending the completion of the judicial reviews.
What do Canadian CPAs need to know?
The scope of the draft Rule will impact nearly all SEC registrants.
Canadian companies that are registrants with the SEC that file using the Multi-jurisdictional Disclosure System (MJDS) and file their Exchange Act registration statements and annual reports on Form 40-F will not be subject to reporting under the Rule.
However, Canadian companies that are either U.S. domestic registrants that file their Exchange Act registration statements and Annual Reports on Form 10-K, or Foreign Private Issuers (FPI) that file their Exchange Act registration statements and Annual reports on Form 20-F, will be subject to the Rule.
Additionally, a Canadian subsidiary of a company that is in-scope of the Rule (e.g., a Canadian subsidiary of a U.S. domestic filer) could find themselves in a position needing to provide climate-related information required by the Rule to their parent company.
Where can I learn more?
For more information, please refer to our SEC Climate Rule Summary and our FAQs
You can also refer to: