Governance, Risk & Compliance: GRC
Five Tips on Preparing for the SEC Climate Disclosure Rule
In March of 2022, U.S. Securities and Exchange Commission (SEC) proposed a rule requiring that registrants add a standard set of climate-related disclosures to their annual reporting. With uncertainty around the timing and detail of the final rule, how can SEC-regulated companies prepare to meet their obligations?
The SEC’s new rules will require U.S. public companies to disclose climate-related risks and impacts. This Includes the greenhouse gas emissions they are directly responsible for, as well as Scope 3 emissions from their supply chains and products. In fact, these indirect emissions will be more difficult to account for. Now is the time you need to gather data from third parties. How will it be gathered? How will you gain confidence in the veracity of the data? What certifications and attestations will you require for different segments of your extended enterprise in the value chain?
To help you prepare for these upcoming changes, we’ve put together a concise guide with five tips on how to navigate the new climate regulation. We hope this tip sheet will provide valuable insights and allow you to ensure you’re prepared with insight into what the SEC climate regulations may mean for your organization.
The five tips on SEC climate cover everything from ensuring ESG standards are aligned with enterprise risk management to meeting the challenge of third parties/supply chain. This tip sheet also presents guidance on to new or existing capabilities, incorporating agility, and how to budget now for regulatory compliance.
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