eBooks & Guides

SUMMARY OF THE LEADING STANDARDS AND REGULATIONS: Sustainability & Energy Management Simplified This summer, new ESG standards from the International Sustainability Standards Board (ISSB) and the European Union were finalized. And, regulations like the Corporate Sustainability Reporting Directive (CSRD), the Securities and Exchange Commission's (SEC) Climate Disclosure rule, and the UK's Sustainable Disclosure Requirements - to name only a few - are all coming into effect. It holds the promise of accelerating sustainable economic development through the availability of better data and allowing companies to communicate sustainability performance more efficiently through the use of common standards. Understand some of the most important recent updates, requirements, and defining characteristics of the most influential standards and regulations defining the "new" alphabet soup with comparisons below: U.S. SECURITIES AND EXCHANGE COMMISSION Enhancement and Standardization of Climate-Related Disclosures for Investors THE RECENT UPDATE: In March 2022, the U.S. Securities and Exchange Commission (SEC) released a new proposal for public companies to begin reporting their carbon emissions and reduction progress alongside their financial results, bringing U.S. reporting requirements more in line with other global regulations. The proposal focuses specifically on how climate risks are identified, assessed, managed, and disclosed; climate risk scenario analysis or the financial impact of severe weather and other natural events as well as transition activities; and greenhouse gas emissions (GHG). The SEC's climate disclosure standards are informed and influenced by TCFD (Task Force on Climate-Related Financial Disclosures), so we recommend organizations familiarize themselves with TCFD guidelines if they haven't already done so. ABOUT 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.

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