eBooks & Guides

Sustainability & Energy Management Simplified 05 — Climate-Related Targets or Goals: Disclosure of any climate-related targets or goals that significantly impact the registrant's business, results, or financial condition is required. They should also disclose expenses, capitalized amounts, and losses related to carbon offsets and RECs used for climate-related goals. Any recovery from such events must be disclosed separately. If estimates for financial statements are materially impacted by weather risks or climate plans, a qualitative description of the impact on assumptions must be provided. 06 — Disclosure of Financial Effects of Severe Weather Events: Registrants must disclose the financial impacts of severe weather events and other natural conditions, including associated costs and losses. 07 — Carbon Offsets: Use of and expenditures for carbon offsets and renewable energy credits if used as a material component of a transition plan. Step 3: Obtain Assurance Assurance over Scope 1 and 2 emissions disclosures will be required, initially at a limited assurance level (within 3 years of initial GHG disclosures) and ultimately at a reasonable assurance level for LAFs (within 7 years of initial GHG emissions disclosures). Companies should consider discussing with their independent auditor how generally accepted auditing and accounting standards will apply to the relevant disclosure, the company's accounting records, and the presentation of the disclosure in the notes to the audited financial statements. How do we operationalize data collection and use of technology to accurately measure, manage, and monitor our carbon footprint? Have we conducted a thorough assessment to identify potential climate-related risks that could impact our operations, supply chain, or market position? What are our climate-related targets, goals, and risks? How do we build controls for non-financial reporting and what climate considerations are built into the governance structure of our company?

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