The Securities and Exchange Commission (SEC) has not yet approved its climate-related disclosure rule, despite indications the vote would occur this fall. Implementation of the rule, parts of which are expected to apply fiscal year 2023 for large accelerated filers, might be delayed by litigation.
The proposed rule is a sweeping potential mandate that would force all public companies to quantify, measure, and disclose their effect on the environment. It would order public companies to include disclosures about how climate-related risks affect their strategy, business model, and outlook; how the company’s board and management oversee climate-related issues; and any plans for transition to a lower carbon footprint.
Respondents to Compliance Week’s “Inside the Mind of the CCO” survey said they were experiencing numerous “pain points” to complying with the rule, ranging from a lack of resources, difficulties with finding and collecting required data, and obstacles created by senior managers or other departments.
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The blowback against environmental, social, and governance initiatives in investments and corporate strategies is quickly building momentum in conservative politics, with nearly two dozen states proposing bills that limit ESG investments.
The Securities and Exchange Commission is reportedly considering pulling back on key elements of its proposed climate-related disclosure rule following pushback from investors, companies, and the public.
The climate-related disclosure rule proposed by the Securities and Exchange Commission will eventually pass but not before undergoing some changes, practitioners speaking at CW’s virtual ESG Summit predicted.
It’s important companies exercise patience when determining when to begin an assurance engagement, experts explained during a session at CW’s virtual ESG Summit.
There is much companies can do—and must do, given upcoming regulatory requirements—to rein in Scope 3 emissions, sustainability expert Susan McNichols discussed at CW’s virtual ESG Summit.
John Gagel, chief sustainability officer for Lexmark International, shares with Compliance Week why the private company tracks its greenhouse gas emissions and plans to comply with the climate-related disclosure rule proposed by the Securities and Exchange Commission.
