Wilson Sonsini | SEC, California, and CSRD Climate Disclosure Requirements Comparison Tool

Following an order by the U.S. Securities and Exchange Commission (SEC) implementing a stay of its final climate disclosure rules pending review of legal challenges to such rules in the U.S. Court of Appeals for the Eighth Circuit, many companies are reassessing their climate disclosure timelines and the underlying processes and systems that will be required to comply with the mandatory sustainability reporting frameworks applicable to them, particularly if litigation related to the SEC’s climate disclosure rules extends over a long period of time.

See our previous client alerts related to the SEC’s final climate disclosure rules and the SEC’s subsequent stay of such rules in light of pending litigation.

While companies can leverage information collected across several sustainability disclosure frameworks, there are meaningful distinctions between the requirements of such frameworks and companies will need to design internal processes, systems, and controls to ensure that the collection and reporting of information is carefully tailored to the appropriate frameworks in the appropriate disclosure channels, including but not limited to the SEC climate disclosure rules, the California climate disclosure laws (Senate Bills 253 and 261 and Assembly Bill 1305), and the European Union’s Corporate Sustainability Reporting Directive (CSRD).

Please see our previous client alerts related to the California climate bills SB 253 and 261 and AB 1035 and our fact sheet on CSRD. This effort is likely to become more complex as various countries advance their own reporting frameworks, adopt the International Sustainability Standard Board (ISSB) sustainability standards, or adjust their reporting frameworks to align with the ISSB sustainability standards. See our previous client alert on ISSB sustainability disclosure standards.

Additionally, the Corporate Sustainability Due Diligence Directive (CSDDD) in the European Union, which is up for a Parliament vote this month, may add additional requirements beyond the scope of the CSRD. See our March 2024 Sustainability and ESG Advisory Practice Update for details on the CSDDD.

Companies that fall within scope of these disclosure frameworks should familiarize themselves with the detailed disclosure requirements set forth in our previously published client alerts. For information on these disclosure requirements, please contact any member of the firm’s Sustainability and ESG teams or public company practice.

This tool is intended to assist companies in determining whether they fall within the scope of SEC, California, and CSRD climate disclosure rules and identifying the types of disclosure applicable to them under each set of rules.

Click here to read the full background and advisory information.

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