Task Force on Climate-Related Financial Disclosures (TCFD) recommendations have been identified by the U.S. Securities and Exchange Commission (SEC) as the basis for the April 2022 proposed rule for The Enhancement and Standardization of Climate-Related Disclosures for Investors (17 CFR 229.1500 et seq.). In addition to disclosing Scope 1, 2, and eventually Scope 3 greenhouse gas emissions, this proposed rule will require certain publicly-traded companies to disclosure actual or potential negative impacts of climate-related conditions and events on their business operations and value chain. This presentation introduces climate change risk disclosure and summarizes key elements of the SEC’s proposed rule. Results of a survey comparing U.S. publicly-traded energy, solid waste, and manufacturing company TCFD disclosures to elements of the proposed rule are presented. Short, medium, and long-term climate change risks and opportunities are compared and contrasted across industry sectors. Questions addressed include: what physical and transition risks appear most frequently and are there significant differences by sector; what transition risks are most frequently identified and are there significant differences by sector; and what opportunities do companies anticipate will arise from climate change? An assessment regarding the degree to which the survey suggests that existing TCFD disclosures align with required elements of the SEC’s proposed rule is provided.
