Integrity 2 ESG, LLC’s Post

We have had a number of clients reach out to us this morning, so thought it would be helpful to summarize the timing, requirements, and how we can help companies address the new climate-related disclosures. 🚩The Securities and Exchange Commission (SEC) has recently adopted rules to enhance and standardize climate-related disclosures by public companies, signaling a significant shift towards more transparent and consistent reporting on the financial impacts of climate-related risks. To meet these new disclosure requirements, it is crucial to understand the key components and timing for compliance. 🕛Timing of Compliance: The compliance dates for the new climate disclosure requirements will be phased in over the next several years. The first requirements are effective for Fiscal Years beginning in 2025 with rollouts continuing through 2031. 🔒 Key Requirements: The key requirements for the new SEC climate disclosure rules include: • Identification and disclosure of climate-related risks impacting business strategy and financial condition. • Reporting on mitigation and adaptation activities undertaken to address material climate-related risks. • Detailed disclosures on climate-related targets, emissions, and financial impacts. • Oversight by the board of directors and management role in assessing and managing climate-related risks. • Integration of risk management processes for identifying and managing climate-related risks. 💡How we can help: We specialize in guiding organizations through the complex landscape of environmental, social, and governance (ESG) strategies. Our team of ESG consultants assists businesses in addressing the new SEC climate disclosure requirements and ensuring compliance with integrity and transparency. Our services include: • Expertise in ESG Strategies: Tailored ESG strategies to address climate-related risks and enhance disclosure practices. • Risk Assessment and Mitigation: Identifying and mitigating climate-related risks that impact business operations and financials. • Reporting Solutions: Assist companies in meeting their SEC disclosure requirements effectively. • Transition Planning: Transition roadmaps, scenario analysis, and internal carbon pricing to adapt to environmental challenges. Partnering with us will ensure compliance with climate disclosure requirements and drive sustainable growth and resilience. 🌱 Together, let's pave the way towards a more sustainable and transparent future! Contact us to learn more. Eileen Murray Andrew Rabinowitz joel press Paul Roth Mark G. Pedretti Peter Golden Alan Swersky, CPA Alexis Ash Ian Conlon Kieran Fox Mark Weir Todd Cort Shiva Rajgopal Joseph Naayem #ESGConsulting #ClimateDisclosure #SECRegulations Integrity 2 ESG, LLC

The SEC just adopted new rules to enhance and standardize climate-related disclosures by public companies. To learn more about the new requirements and how to ensure compliance with the latest rules, check out the summary below from ESG expert Neelam Sharma of Integrity 2 ESG, LLC. ⬇️ #esg #climatedisclosure #esgreporting #compliance

🌍 Exciting News in ESG 🌍 The SEC just announced final rules requiring publicly traded companies to disclose climate-related information in their registration statements and annual reports. This move reflects the growing recognition of the significant impact climate-related risks can have on businesses and their financial performance. Key highlights of the new rules include: 🔍 Disclosure of material climate-related risks and mitigation efforts 📊 Reporting on the financial impacts of climate-related risks 📈 Details on board oversight and management's role in managing these risks 💡 Disclosure of climate-related targets or goals and their financial impacts 🌱 Requirements for disclosing greenhouse gas emissions and severe weather event impacts This marks a crucial step towards providing more consistent, comparable, and reliable information to make informed decisions in a rapidly changing climate landscape. #SEC #ClimateDisclosure #Investing #Sustainability #Finance #Business #ESG #ClimateRisk #EnvironmentalDisclosure https://lnkd.in/e4dpukfy

Yesterday March 6th, the SEC adopted long-awaited final rules regarding climate-related disclosures for public companies to include in SEC filings (10-K, 10-Q, 20-F) and registration statements. According to SEC Chair Gensler, these rules are intended to "provide investors with consistent, comparable, and decision-useful information", enabling capital to be allocated more efficiently and in a manner that holistically accounts for the wide range of actual/potential risks and financial impacts resulting from climate change and related natural disasters. Consequently, these rules will also hopefully help issuers assess and consider how to properly manage climate-related risks, supporting long-term enterprise value. As the effects of climate change mount, the new rules couldn't come at a more relevant time: according to NOAA, the U.S. currently experiences a weather/climate disaster that costs at least $1 billion each ~every 2 weeks. For more information on the final rule and how it differs from the March 2022 proposal, see PwC's latest In Brief: https://lnkd.in/gdMBNq6a. A few highlights to call out: 1. Large accelerated and accelerated filers are required to disclose scope 1 and scope 2 GHG emissions, if material (materiality is defined according to Supreme Court precedent). Scope 3 GHG emissions have dropped entirely. 2. Registrants will be required to disclose certain climate-related financial statement effects and related disclosures in a footnote to the audited financial statements. This includes capitalized costs, expenditures expensed, charges, and losses incurred as a result of severe weather events and other natural conditions. Disclosures are subject to 1% and de minimis thresholds. 3. Various general disclosures are also required, including: material impacts of climate-related physical and transition risks on the registrant’s strategy, business model, and outlook; processes for identifying, assessing, and managing climate-related risks, whether and how climate-related risks are integrated into the company’s overall risk management processes, and any transition plans; and specific quantitative and qualitative disclosures regarding material expenditures and material impacts on financial estimates and assumptions resulting from climate-related targets or goals. For direct sources, see: - SEC press release: https://lnkd.in/g9qtCp4c - SEC fact sheet: https://lnkd.in/gvJemTGJ - Final rule: https://lnkd.in/gpt--DZf

Following up on PwC's "In Brief" on the SEC climate-related disclosures rule, we have now combed through the final text in detail and have summarized our findings and responses to key questions in our latest "In Depth": https://lnkd.in/g4VAUZ4m A few more things to note for business leaders and other practitioners: - the majority of required climate disclosures are applicable to IPO registration statements, not just annual company reports - while private companies are not directly subject to the rules, they may need to provide GHG data and other information to public company counterparts for disclosure (e.g., where a private company is controlled by a public company, or where a public company has ownership interests) - board or management "expertise" on climate-related risk management is defined as any related work experience, degrees or certifications, and other knowledge and skills. Climate and sustainability expertise may soon become a standard qualification for many board- and management-level positions! - climate-related disclosures will be subject to a registrant’s disclosure controls and procedures (DCPs), and the financial statement disclosures will be subject to its internal control over financial reporting (ICFR) - even though scope 3 emissions disclosure requirement has been dropped, registrants may still need to disclose scope 3 targets or goals if deemed material - if a company has set a material climate-related goal but does not have a definitive plan to achieve it, we believe the company would need to disclose that fact. This underscores the importance of credible transition plans as a decision-useful piece of information for investors - given that many disclosures now have a "materiality qualifier", management discretion and judgement is required in determining whether a disclosure (e.g., GHG emissions, climate-related risks) is material. Management must apply the definition of materiality from Supreme Court precedent, assessing whether the applicable disclosure is significant to an investor's investment decisions

SEC Adopts Climate Change Disclosure Rules Applicable to Public Companies and Offerings - The Securities and Exchange Commission (the “SEC”) has adopted new rules that require public companies to disclose substantial information about the material impacts of climate-related risks on their business, financial condition, and governance (the “Final Rules”).  The SEC says that “climate-related risks, their impacts, and a public company’s response to those risks can significantly affect the company’s financial performance and position.”   The Final Rules require disclosure of a range of climate-related matters, including: Any material climate-related risks and their impacts on the registrant’s business strategy, results of operations, and financial condition, as well as on the registrant’s outlook and business model. Any activities, plans, or processes to mitigate, adapt to, or manage material climate-related risks, including the use of transition plans, scenario analyses, or internal carbon prices.  Any board oversight and management role in assessing and managing material climate-related risks. Any targets or goals that have materially affected or are reasonably likely to materially affect the registrant’s business, results of operations, or financial condition. Scope 1 and/or Scope 2 greenhouse gas emissions (“GHG”) by certain larger registrants when those emissions are material, and the filing of an attestation report covering the required disclosure of such emissions, in each case, on a phased-in basis.  The financial statement effects of severe weather events and other natural conditions, including costs and losses. We discuss the Final Rules in our Legal Update. We also include a table with the text of Subpart 1500 of Regulation S-K. The post SEC Adopts Climate Change Disclosure Rules Applicable to Public Companies and Offerings appeared first on Eye on ESG. The Securities and Exchange Commission (the “SEC”) has adopted new rules that require public companies to disclose substantial information about the material impacts of climate-related risks on their business, financial condition, and governance (the “Final Rules”).  The SEC says that “climate-related risks, their impacts, and a public company’s response to those risks can significantly affect the company’s financial performance and position.”   The Final Rules require disclosure of a range of climate-related matters, including: Any material climate-related risks and their impacts on the registrant’s business strategy, results of operations, and financial condition, as well as on the registrant’s outlook and business... https://lnkd.in/gNrEJPsH

🌍 Exciting news from the SEC! On March 6, 2024, the U.S. Securities and Exchange Commission took a monumental step toward enhancing transparency and accountability in how businesses report their climate-related risks and actions. With the publication of the final rule on climate-related disclosures, we're moving into a new era where investors, and indeed all stakeholders, can gain clearer insights into how climate-related issues impact businesses and what measures are being taken to manage these risks. This initiative isn't just about compliance; it's a leap toward fostering a more sustainable future. By requiring registrants to disclose material climate-related risks, including greenhouse gas emissions, and how they're managing these risks, the SEC is providing a valuable framework that encourages businesses to rethink their environmental impact and strategies for sustainability. The phased compliance dates ensure that organizations have the time to adapt and align their reporting practices, making this transition smoother and more manageable. This rule represents a significant step forward in our collective journey toward a more sustainable and transparent corporate world. For a deeper dive into what this means and to get equipped with the details, check out the SEC's fact sheet here (https://lnkd.in/e87vx_mK) and the full final rule here (https://lnkd.in/ezVQaiDB). Let's view this as a catalyzing moment for positive change, driving future actions that contribute to a healthier planet and a more sustainable economy. 🌿💼 #SEC #ClimateAction #Sustainability #CorporateTransparency

SEC Adopts Climate Change Disclosure Rules Applicable to Public Companies and Offerings - The Securities and Exchange Commission (the “SEC”) has adopted new rules that require public companies to disclose substantial information about the material impacts of climate-related risks on their business, financial condition, and governance (the “Final Rules”).  The SEC says that “climate-related risks, their impacts, and a public company’s response to those risks can significantly affect the company’s financial performance and position.”   The Final Rules require disclosure of a range of climate-related matters, including: Any material climate-related risks and their impacts on the registrant’s business strategy, results of operations, and financial condition, as well as on the registrant’s outlook and business model. Any activities, plans, or processes to mitigate, adapt to, or manage material climate-related risks, including the use of transition plans, scenario analyses, or internal carbon prices.  Any board oversight and management role in assessing and managing material climate-related risks. Any targets or goals that have materially affected or are reasonably likely to materially affect the registrant’s business, results of operations, or financial condition. Scope 1 and/or Scope 2 greenhouse gas emissions (“GHG”) by certain larger registrants when those emissions are material, and the filing of an attestation report covering the required disclosure of such emissions, in each case, on a phased-in basis.  The financial statement effects of severe weather events and other natural conditions, including costs and losses. We discuss the Final Rules in our Legal Update. We also include a table with the text of Subpart 1500 of Regulation S-K. The post SEC Adopts Climate Change Disclosure Rules Applicable to Public Companies and Offerings appeared first on Eye on ESG. The Securities and Exchange Commission (the “SEC”) has adopted new rules that require public companies to disclose substantial information about the material impacts of climate-related risks on their business, financial condition, and governance (the “Final Rules”).  The SEC says that “climate-related risks, their impacts, and a public company’s response to those risks can significantly affect the company’s financial performance and position.”   The Final Rules require disclosure of a range of climate-related matters, including: Any material climate-related risks and their impacts on the registrant’s business strategy, results of operations, and financial condition, as well as on the registrant’s outlook and business... https://lnkd.in/g8ppAHnG

This post is for those not following the SEC climate rule as closely, because most of my colleagues have been watching and waiting for the last two years. The rule is related to disclosures for public companies, with different requirements and timelines based on size.   While other regulations like the EU's CSRD or California's climate rules require far deeper disclosures, including "Scope 3" emissions that cover a company's full supply chain, this rule by the SEC is a market signal that climate has become a critical component to evaluating risk and value in a company, and attempts to create more consistency and rigor around reporting - including the need for third-party assurance for some companies.   Below is a link to the SEC factsheet, which was published yesterday after the rule was approved. At BDO USA, we'll be updating our SEC resource center on our website and have an upcoming webcast talking about regulations. We'll continue to share analysis on this and other regulations in the coming months, which you can subscribe to on our website.   In fact, BDO has an entire Sustainability & ESG Center of Excellence that, among other things, tracks regulations and helps companies identify and comply with requirements that apply to them and their organization's size and type and industry. We also help with sustainability strategies, sustainable financing, climate mitigation and other advising. And we put out a lot of free thought leadership insights, articles and webcasts. Feel free to DM me if we can help in any way. #sec #climaterule #regulations #sustainability #esg

Exciting News! The Climate Canvas Methodology and Tools are in line with the Securities and Exchange Commission (SEC) Rules, officially adopted on March 6, 2024. SEC has finalized rules mandating registrants to disclose specific climate-related information. These rules necessitate registrants to disclose, among other aspects: - Material climate-related risks - Actions taken to mitigate or adapt to these risks - Details regarding the oversight of climate-related risks by the registrant's board of directors - The role of management in managing material climate-related risks - Information regarding any climate-related targets or goals deemed significant to the registrant's business, operational outcomes, or financial state. This regulation strive to enhance and standardize climate-related disclosures for companies, meeting investors' demand for consistent, comparable, and reliable information about the financial effects of climate-related risks. Leveraging the disclosure framework, the Climate Canvas pioneers streamlined tools tailored for SMEs, empowering them to effectively plan and report their emissions. Learn more about the SEC's recent adoption of rules to improve climate-related disclosures for investors: https://lnkd.in/gzvaMv25 Let's take strides towards a sustainable future together! 🌱💼 #ClimateAction #Sustainability #SEC #ClimateDisclosure