While the U.S. waits for the U.S. Securities and Exchange Commission's (SEC)
sustainability disclosure proposals to emerge, large retailers that meet the
designated criteria set out by the SEC for which companies will be required to
report should not rest on their laurels when it comes to preparatory activities
and future-proofing their reporting data. The proposed rule, unveiled in March
2022, would require publicly traded companies to disclose their greenhouse gas
emissions and any climate-related financial risks to their operations within
financial reports. This plan is considered to be monumental by many leaders in
the finance and ESG space for the unusual nature in which it requires climate-
related information and data to cut across all areas and sections of the
traditional financial disclosure process and capital market regulation. It is a clear
signal of how important climate and environmental concerns have become in
the world of capital markets and the global economy.
PREPARING FOR SEC CLIMATE
DISCLOSURES
MOST RECENT UPDATES AND PROGRESS AS OF
SUMMER 2023:
We can expect a final rule in October 2023: The SEC is currently making final
adjustments to its proposed corporate climate disclosure rules. Former SEC
Commissioner, Robert Jackson has indicated that the final publication of the
climate disclosures is likely to be pushed back to Q3 of this year.
Timelines will shift back due to delays: Given the new time frame, financial
statements and disclosures under the rule would not be due until 2024
Expect amendments to initial drafts: Media reports and public statements by
SEC Chair, Gary Gensler, indicate that the SEC is considering scaling back on
scope 3 emissions requirements. Other amendments may include where
emissions disclosures are provided within statements and a watering down of
the materiality definition.
Sustainability & Energy Management Simplified
