eBooks & Guides

CLIMATE REGULATIONS TO BE AWARE OF: SEC CLIMATE DISCLOSURE RULES: The SEC's climate disclosure rule, proposed in March 2022, would require publicly traded companies to disclose information about climate- related financial risks and report their greenhouse gas emissions. This rule is modeled on the framework created by TCFD. SB253: SB253 requires certain public and private companies operating in California to report scope 1, scope 2, and scope 3 emissions. Reporting should adhere to the Greenhouse Gas (GHG) Protocol standards, and third-party verification is required. SB261: SB 261 requires certain public and private companies operating in California to prepare and submit climate-related financial reports, describing measures adopted to mitigate and adapt to that risk, in line with the Task Force on Climate-Related Financial Disclosure (TCFD) framework. CSRD: The Corporate Sustainability Reporting Directive (CSRD) requires relevant EU companies to report on material issues in line with the GHG protocol. BUILDING PERFORMANCE STANDARDS : Building performance standards are regulations specifically targeted towards reducing emissions in buildings. Typically, these standards have an emissions limit component as well as a reporting component. The specifics of building performance standards vary according to the region they have been set in. KEY FRAMEWORKS/STANDARDS: REPORTING LANDSCAPE These voluntary reporting guidelines will help you determine what information you need to compile and how you need to measure your performance in order to eventually comply with disclosure regulations. Created with the intent to provide a unified set of climate reporting standards. The ISSB published its first two final standards in June 2023: one on climate-related disclosure requirements (IFRS S2) and one on general disclosure requirements addressing governance and other sustainability matters (IFRS S1). Background: The ISSB is a consolidated framework, incorporating knowledge from prior standards including the Climate Disclosure Standards Board (CDSB) and the Value Reporting Foundation (VRF). They encourage companies to continue to use the resources provided by these bodies, such as the Integrated Thinking Principles, the Integrated Reporting Framework and SASB Standards (see appendix for more background information). INTERNATIONAL SUSTAINABILITY STANDARDS BOARD TCFD (TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES) The primary framework for companies to assess and disclose climate-related financial risks and opportunities. Provides a crucial basis for the ISSB standards, and is the primary influence for many regulations (SEC, California SB 253 & 261, and EU regulations). Companies should used TCFD to prepare for regulation. GREENHOUSE GAS PROTOCOL: The primary framework for businesses, governments, and other entities to measure and report their greenhouse gas emissions (carbon accounting, GHG emissions inventory, GHG accounting, carbon footprint). (Relevant Regulation: SB253, CSRD) By working with TCFD recommendations & SASB metrics, investors/ companies can prepare for future global ESG reporting regulations UNITED STATES EU OTHER IMPORTANT FRAMEWORKS FOR SUSTAINABILITY REPORTING: Information and reporting guidelines that help you measure your performance. These are voluntary and do not currently have any direct financial / legal impact Leading provider of sustainability standards aimed at broader stakeholders. Informed the creation of IFRS 1 and 2, and is now a complementary resource. GRI (GLOBAL REPORTING INITIATIVE): CDP (CARBON DISCLOSURE PROJECT): Empowers organizations to measure, disclose, manage, and share environmental data, fostering transparency and driving action to mitigate climate-related risks. UN SDGS (UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS): Set of 17 global objectives designed to address various social, economic, and environmental challenges by 2030. Companies can use these goals as a framework to drive initiatives. SBTI (SCIENCE-BASED TARGETS INITIATIVE): Provides a framework for companies who want to set climate goals. The framework ensures that these goals and emission reduction efforts are scientifically effective in addressing climate change. PRI (PRINCIPLES FOR RESPONSIBLE INVESTMENT): Guides investors in integrating environmental, social, and governance (ESG) factors into investment decision-making, encouraging sustainable practices and contributing to long- term value creation. curated and designed by:

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