The SEC Climate Rule

Book: SEC Climate Change. Chapter-1-1

Ordering Information

This book is under development. The information provided here is taken from the current draft.


 

Chapter 1 — Climate Regulations

Organization of this Book
Two Disclaimers    
ESG  
Justification for the Rule
Leadership   
Background Information
   Greenhouse Effect
   Greenhouse Gases
   Temperature Trends
   Impacts
   Committed Warming   
   Dynamic Change 
   Tipping Points    
Conferences of the Parties   
   COP21 — The Paris Agreement    
   COP26 — Glasgow
IPCC — Intergovernmental Panel on Climate Change 
   Key Reports
   Global Warming of 1.5 Degrees 
   Net Zero
   Physical Science Basis Report
   Impacts, Adaptation and Vulnerability Report
   Mitigation of Climate Change Report
   Synthesis Report
   Sixth Assessment Fact Sheet
Risk    
   Subjectivity 
   Components of Risk
   Acceptable Risk   
   Uncertainty and Risk
   Insurance
   Risk Matrix
   Existential Risk and Collapse

Chapter 2 — Standards

Types of Regulation and Standard    
The Task Force on Climate-Related Disclosures (TCFD)  
TCFD Final Report: Recommendations 
   Executive Summary
   A. Introduction
   B. Climate-Related Risks, Opportunities and Financial Impacts
   C. Recommendations and Guidance
   D. Scenario Analysis and Climate-Related Issues
   E. Key Issues Considered and Areas for Further Work
   F. Conclusion 
TCFD Guidance on Risk Management, Integration and Disclosure
TCFD Guidance on Metrics, Targets, and Transition Plans
Additional TCFD Information    
The Greenhouse Gas Protocol 
Scopes 
   Scope 1 — Direct Emissions 
   Scope 2 — Indirect Emissions   
   Scope 3 — Corporate Value Chain Standard
   Scope 4 — Avoided Emissions 
Other Organizations 
   Financial Stability Board (FSB) 
   Sustainability Accounting Standards Board (SASB)
   Climate Disclosures Standard Board (CDSB)
   IFRS
   ISSB
   Network for Greening the Financial System (NGFS)
   Principles for Responsible Investment (PRI)    
   FSOC (Financial Stability Oversight Council)    
   Financial Standards Accounting Board (FASB) 
   Financial Accounting Foundation (FAF) 
   International Energy Agency (IEA) 
ISO 14064  
International Rules  
   European Union   
Professional Societies / Regulators

Chapter 3 — The Proposed SEC Rule

The Securities and Exchange Commission 
The Climate-Disclosure Rule
Principles for Effective Disclosure
   Materiality
   Safe Harbor
   Timing  
   Accelerated Filers
Analysis of the Proposed Rule
Information Only
Section I. Introduction
Section II. Discussion
   A. Overview of the Climate-Related Disclosure Framework
   B. Disclosure of Climate-Related Risks
   C. Disclosure Regarding Climate-Related Impacts on Strategy, Business Model, and Outlook
   D. Governance Disclosure
   E. Risk Management Disclosure
   F. Financial Statement Metrics
   G. GHG Emissions Metrics Disclosure
   H. Attestation of Scope 1 and Scope 2 Emissions Disclosure
   I. Targets and Goals Disclosure
   J. Registrants Subject to the Climate-Related Disclosure Rules and Affected Forms
   K. Structured Data Requirement 
   L. Treatment for Purposes of Securities Act and Exchange Act 
   Section IV. Economic Analysis 
   Stranded Assets

Chapter 4 — Comments on the Proposed Rule

Abstract
The Task Force on Climate-Related Disclosures (TCFD)
TCFD Final Report
   A. Introduction
   B. Climate-Related Risks, Opportunities and Financial Impacts
   C. Recommendations and Guidance
   D. Scenario Analysis and Climate-Related Issues
   E. Key Issues Considered and Areas for Further Work
   F. Conclusion
   Recommendations
TFCD Guidance on Risk Management, Integration and Disclosure
TFCD Guidance on Metrics, Targets, and Transition Plans
TFCD Implementing the Recommendations
The Greenhouse Gas Protocol
Other Organizations
   Financial Stability Board (FSB)
   Sustainability Accounting Standards Board (SASB) 
   Climate Disclosures Standard Board (CDSB)
   ISSB
   Network for Greening the Financial System (NGFS)
   Principles for Responsible Investment (PRI)
   FSOC (Financial Stability Oversight Council) 
   Federal Reserve
   FASB   
   ISO 14064
International Rules
   European Union
Emissions Trading
   Carbon Offsets
   Renewable Energy Certificates
   Carbon Credits
   Cap and Trade
   Carbon Taxes
Professional Societies

Chapter 5 — Reporting and Auditing

Final Report
   Governance
   Strategy
   Risk Management  
   Metrics and Targets
Implementing the Recommendations
Reporting Standard
Living Document
Data Quality
Metrics
Emission Factors
Shortage of Expertise
TFCD Illustrative Implementation Plan
TFCD Good Practice Handbook
Auditing
Formal Audits
Assessments 
Emissions Trading 
   Carbon Offsets  
   Renewable Energy Certificates
   Carbon Credits
   Cap and Trade 
   Carbon Taxes
Scenario Analysis
SEC Requirements
TCFD Scenario Analysis
TCFD Guidance
Key Elements
Two Roads
   The First Road — Stability
   The Second Road — Uncertainty
   Overshoot / Collapse
   Imaginary Gardens and Real Toads
   Black Swans
Scenario Analysis  
   Alternative Futures
   Stories
   Mathematical Models
   High Consequence Events
   Team Analysis
Problems of Scale   
Adaptation

Chapter 6 — Response

Energy
   Energy Properties
   Peak Oil
   Energy Returned on Energy Invested (ERoEI)
   The Energy Cliff 
Adaptation
Capture and Sequestration (CC&S)

Abbreviations and Glossary

References

Ian Sutton

Chapters

1. Climate Regulations
2. Standards
3. The Proposed SEC Rule
4. Comments on the Proposed Rule
5. Reporting and Auditing
6. Response