An In-Depth Analysis of the SEC’s Climate- Related Disclosure Rules

Play an AI-generated podcast conversation about this lesson

What must a registrant do if they choose to include their Scope 1 and Scope 2 GHG emissions disclosure in their Form 10-Q for the second fiscal quarter following the year to which the disclosure relates?

Include an extra attestation report in their Form 10-Q

Include the attestation report within the Form 10-Q itself

Submit a separate disclosure form for the GHG emissions information

Expressly state their intention to incorporate by reference the required attestation report in their Form 10-K (correct)

According to the SEC, what is a key requirement for a GHG emissions attestation provider to be considered independent?

Having a close relationship with the registrant

Having no knowledge of relevant facts and circumstances

Being a subsidiary of a large auditing firm

Being capable of exercising objective and impartial judgment on all issues encompassed within their engagement (correct)

Incorporating by reference the required attestation report is necessary when a registrant chooses to disclose GHG emissions in which filing?

Form 10-K (correct)

Form 10-Q

Proxy Statement

Form 8-K

What may be useful for registrants in understanding independence issues related to GHG emissions attestation providers?

Guidance and staff interpretations regarding Rule 2-01 of Regulation S-X Signup and view all the answers

Under the Final Rule, what would disqualify a GHG emissions attestation provider from being considered independent?

Not being capable of exercising objective and impartial judgment Signup and view all the answers

What is the primary reason for incorporating by reference the attestation report?

To maintain independence of GHG emissions attestations Signup and view all the answers

What type of disclosures are typically not reviewed or audited by an independent expert under Regulation S-K?

Financial statements Signup and view all the answers

What should be included if the organizational boundaries materially differ from the entities and operations in the registrant's consolidated financial statements?

A brief explanation of the difference Signup and view all the answers

What must be discussed according to 17 C.F.R.§ 229.1505(b)(1)(iii) related to GHG emissions?

The approach to categorization of emissions and sources Signup and view all the answers

Under 17 C.F.R.§ 229.1505(b)(2), what should be detailed about the calculation approach for GHG emissions?

The calculation tools used Signup and view all the answers

What is required for attestation reports related to GHG emissions based on 17 C.F.R.§ 229.1506(a)?

They should follow due process procedures Signup and view all the answers

What is the independence requirement for attestation reports related to GHG emissions according to the text?

Should be prepared by an independent body following due process procedures Signup and view all the answers

What level of assurance is required initially for the attestation report on GHG emissions disclosure?

Limited assurance Signup and view all the answers

What does 'limited assurance' in the context of the attestation report mean?

Negative assurance that no material misstatement was found Signup and view all the answers

What is the equivalent assurance level provided for large accelerated filers in the attestation report requirement?

Reasonable assurance Signup and view all the answers

In the context of GHG emissions disclosure, what does 'reasonable assurance' imply?

High level of confidence but not absolute certainty Signup and view all the answers

How are the attestation requirements regarding GHG emissions modeled?

Modeled on SEC rules for changes in auditors Signup and view all the answers

What triggers disclosure requirements related to changes in a registrant's attestation provider?

Disagreements between the provider and the company Signup and view all the answers