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What's the latest on climate-related disclosures?

Author
Cecile BussyPR & Communications
Category
Guide
Topics
Regulations
Published
28 February 2022

Keep up to date with all the new carbon reporting regulations.

Keep up to date with all the new carbon reporting regulations.

Climate-related disclosures grew by 35% last year – a record number that shows more companies are getting serious about their carbon emissions. As carbon reporting becomes common practice globally, regulations are also changing around the world to improve the transparency and comparability in carbon reporting. 

Disclosing climate-related information is essential to global efforts to tackle climate change. Governments know including companies in their carbon reduction plans is key to achieving net-zero (hello COP27 👀). That’s why many countries are starting to enforce mandatory reporting in accordance with internationally recognised standards. 

The two main standards you should know about are the Greenhouse Gas Protocol, the go-to standard for reporting greenhouse gas emissions, and the Task Force on Climate-related Financial Disclosures (TCFD), which sets recommendations for reporting the financial risks of climate change.

Which countries are implementing climate-related disclosures?

Here’s a quick overview of the current and upcoming regulations around the world.

Europe

Countries

Current requirements

Upcoming regulations

Timeline

EU

(regulations apply to all EU member states)

Companies with 500+ employees must report their current and foreseeable impacts on the environment, use of renewable and non-renewable energy, GHG emissions, water use and air pollution.

Framework:

Non-Financial Reporting Directive (NFRD)

Read more

The Corporate Sustainability Reporting Directive (CSRD) extends the scope of the NFRD to include more companies and introduces more detailed reporting requirements.

Framework:

ESRS

Read more

The Sustainable Finance Disclosure Regulation (SFDR) requires financial entities to disclose how they consider sustainability risks in financial decisions.

Read more

CSRD:

From October 2022

SFRD:

From March 2021, with more requirements being implemented in 2022

UK

Companies with 500+ employees and incorporated quoted companies must report their GHG emissions.

Framework: CSBD.

Read more

Mandatory climate-related disclosures for large businesses and financial institutions.

Framework: TCFD

Read more

Rolling out:

from April 2022

Mandatory:

by 2025

Switzerland

N/A

Companies and financial institutions with 500+ employees, more than CHF 20 million in assets or CHF 40 million in turnover must make TCFD-aligned disclosures.

Framework:

TCFD

Read more

Mandatory:

by 2024

America

Countries

Current requirements

Upcoming regulations

Timeline

USA

Organizations that emit more than 25,000 tCO2e per year are required to report their GHG emissions.

Framework:

Mandatory Reporting of Greenhouse Gases Rule

Read more

Mandatory disclosure climate-related risks and Scope 1, 2, and 3 emissions. If these are considered material, or if the company has set a target that includes Scope 3 emissions. Smaller companies are exempt.

Framework:

TCFD

Read more

Rolling out:

from 2023

Canada

N/A

Announced intention to mandate TCFD-aligned disclosures from 2024.

Framework:

TCFD

Read more

Note:

US regulations apply to foreign companies listed on the US stock exchange, which will affect some of Canada’s most polluting companies

N/A

Brazil

Energy and utility companies must disclose all social and environmental information and produce an annual sustainability report.

Framework:

Despacho 3034/2006

Read more

TCFD-aligned disclosures will become mandatory for banks by July 2022.

Framework:

TCFD

Read more

Mandatory:

by July 2022

Mexico

Companies that emit more than 25,000 tCO2e per year must report their GHG emissions.

Framework:

Regulation of the General Climate Change Law

Read more

New TCFD consortium announced, that will push for the implementation of climate disclosure regulations.

Framework:

TCFD

Read more

N/A

Asia

Countries

Current requirements

Upcoming regulations

Timeline

Japan

Organizations that consume more than 1,500kl of energy or emit more than 3,000 tCO2 per year must report their GHG emissions.

Framework:

Mandatory Greenhouse Gas Accounting and Reporting System

Read more

The Corporate Governance Code 2021 revision encourages listed companies to make TCFD-aligned climate disclosures. The Financial Services Agency (FSA) intends to make this mandatory by April 2022.

Framework:

TCFD

Read more

N/A

Malaysia

N/A

Proposal to make TCFD-aligned disclosures mandatory for all listed issuers by 2024.

Framework:

TCFD

Read more

N/A

Singapore

N/A

TCFD-aligned disclosures for all issuers on a comply-or-explain basis in 2022, becoming fully mandatory by 2023 or 2024 depending on the industry.

Framework:

TCFD.

Read more

Rolling out:

from 2022

Mandatory:

by 2023 for financial, agroforestry and energy sectors, and by 2024 for building and transportation industries

India

N/A

Mandatory ESG disclosures for the top 1000 listed companies.

Framework:

BRSR

Read more

Mandatory:

by 2023

China

Large organizations must report their emissions.

Framework:

GHG Protocol

Read more

No policies announced yet, but China is planning on making climate disclosures mandatory “in the future.”

N/A

Hong Kong

Listed issuers must publish a corporate governance report and an ESG report.

Framework:

SEHK guidelines

Read more

ESG reporting guidelines have been broadened to adopt TCFD recommendations, starting on a comply-or-explain basis in 2023 but intended to become fully mandatory by 2025.

Framework:

TCFD

Read more

N/A

Australasia/Oceania

Countries

Current requirements

Upcoming regulations

Timeline

Australia

Organizations that emit greenhouse gasses, consume energy, or produce energy above a certain threshold (lowered each year) are required to report their GHG emissions.

Framework:

National Greenhouse and Energy Reporting Scheme

Read more

Issuers of financial products must disclose how environmental considerations were taken into account in investment decisions.

Framework:

Section 1013DA.

Read more

Announced mandatory TCFD-aligned disclosures, starting on a comply-or-explain basis before moving to a fully mandatory system.

Framework:

TCFD

Read more

Rolling out: from 2022

Mandatory: by 2024

New Zealand

N/A

Mandatory climate disclosures for large financial institutions, on a comply-or-explain basis.

Framework

:

TCFD

.

Read more

Mandatory:

by 2023

Africa

Countries

Current requirements

Upcoming regulations

Timeline

South Africa

Organizations that emit more than 100,000 tC02e per year must report their GHG emissions.

Framework

:

South African Greenhouse Gas Emission Reporting System

.

Read more

Organizations will be required to submit pollution mitigation plans.

Framework

:

General Notice No. 43827

.

Read more

Mandatory:

by January 2023

Kenya

N/A

Commercial banks will be required to disclose climate-related risk plans and submit quarterly implementation progress reports.

Framework

:

TCFD

.

Read more

Mandatory:

by September 2022

Egypt

N/A

EGX-listed companies and companies with issued capital of E£100+ million will be required to submit ESG reports. Those with issued capital of E£500+ million will be also required to make TCFD-aligned climate disclosures.

Framework:

ESG standards,

TCFD

Read more

Mandatory:

by 2023

We’ll keep this table updated with the latest announcements. If we’ve missed any, let us know!

As you can see, reporting regulations are coming in fast. That’s why we recommend you start reporting climate-related information as soon as possible, even if there are no mandatory reporting requirements in your region (yet).

This will give you a competitive advantage by preparing you for future regulations, helping you build a more climate-resilient business strategy, and improving your performance on the market, your appeal to customers and your reputation.

How can Sweep help?

Sweep helps big companies and financial institutions measure, reduce, and report their emissions in line with the GHG Protocol standard. Our network approach to carbon management lets you connect and track emissions across your entire organization and value chain. That way, you can create transparent, comparable and granular datasets that can be applied to whichever climate framework you’re required to follow.

Want to learn more? Get in touch.

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