Summary
Regulations in the U.S. and abroad seek to require companies to publicly disclose climate-related risks on their finances, operations, and assets. Some of these rules are proving more durable than others. While the Trump administration has rescinded Biden-era federal climate disclosure rules from the Securities and Exchange Commission (SEC), state governments and international regulators are advancing reporting regimes that could have major implications for U.S. real estate companies.
Key Takeaways
Scope 3 emissions—such as tenant energy use or embodied carbon in building materials—are not under the direct control of real estate owners and should remain voluntary.
The SEC’s climate disclosure rule is on hold and not expected to advance during the current administration.
California’s climate disclosure laws (S.B. 253 and S.B. 261) will begin taking effect in 2026, requiring large companies doing business in California to report emissions and climate-related financial risks.
The European Union has postponed compliance dates for its Corporate Sustainability Reporting Directive (CSRD) and has narrowed its scope substantially. In February 2025, the European Commission adopted a package to apply the CSRD only to the largest companies (more than 1000 employees), and to lessen Scope 3 reporting requirements on emissions from smaller companies in a reporting company’s value chain. Large U.S. companies with EU operations may still face disclosure requirements when the CSRD goes into full effect.
See the full fact sheet.
Clarify Emissions Reporting Boundaries: Real estate companies do not control most Scope 3 emission sources, thus they should not be mandated to publicly report these emissions. Disclosure should remain voluntary.
Improve Data Access for Voluntary Scope 3 Reporting: Policymakers can encourage voluntary Scope 3 reporting by helping building owners and developers capture valid and reliable data from supply chain sources.
Align Reporting Timelines Across Jurisdictions: Any reporting cycles should be consistent across varying disclosure regimes, based on when companies collect and verify valid climate-related data within a fiscal year.
No framework should require companies to issue a first report based largely on estimates, and then another report later based on collected and verified data, within the same fiscal year
Federal, State, and International Rules