Guest post by The Uplift Agency
THE U.S. SECURITIES AND EXCHANGE COMMISSION’S (SEC) PROPOSED NEW CLIMATE-RELATED DISCLOSURE REQUIREMENTS.
Pending a public review period, the new rule is set to begin in 2024. The proposal will require public companies to disclose:
- Climate-related risks and the specific process the company is using to manage those risks
- climate-related corporate goals and the plan to achieve them, and
- greenhouse gas (GHG) emissions including in corporate supply chains (if material) for all businesses registered with the SEC.
WHAT DOES THIS MEAN FOR PUBLIC COMPANIES?
All public companies need to be equipped to track and report GHG emissions, to have climate goals, and a detailed plan on how they’ll reach those goals by 2024. It is important to plan and implement this in 2023 as the 2024 disclosure will require you to report on information and practices from 2023. Read More
WHAT DOES THIS MEAN FOR PRIVATE COMPANIES?
While this regulation does not affect private companies, it still matters for two reasons.
- Your competitors that are public will now have greater climate data, strategy, and plans and will be communicating that to consumers, employees, and the government. You can expect that they will leverage this to tell their sustainability story and position themselves as a more sustainable option.
- It is likely that the pressure to keep up with public companies and/or future government regulation will make it only a matter of time before private companies also have to report.
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