Climate Disclosure Regulations by Region

Climate disclosure regulations vary significantly by region, reflecting differing policy priorities and market maturity. In North America, the United States is advancing mandatory climate-related financial disclosures through the Securities and Exchange Commission (SEC), focusing on greenhouse gas emissions, climate risks, and governance. Canada follows similar trends, encouraging transparency aligned with international frameworks. Europe leads globally with the European Union’s Corporate Sustainability Reporting Directive (CSRD), requiring extensive climate and sustainability disclosures from large companies. The EU also integrates the Sustainable Finance Disclosure Regulation (SFDR) to guide investment decisions toward sustainability. In Asia-Pacific, countries like Japan and Singapore have introduced guidelines encouraging voluntary climate disclosures, while China is moving toward mandatory reporting for certain sectors, emphasizing carbon neutrality goals. Latin America and Africa are in earlier stages, with emerging frameworks influenced by global standards such as the Task Force on Climate-related Financial Disclosures (TCFD). However, regulatory momentum is growing, especially in resource-dependent economies. Overall, global climate disclosure regulations are evolving rapidly, driven by investor demand, international agreements, and the need for transparency in managing climate risks and opportunities. Harmonization efforts, such as the International Sustainability Standards Board (ISSB), aim to standardize reporting across regions, enhancing comparability and decision-making.