HomeCarbon MarketsSEC Starts to Focus on Climate Change Impact

SEC Starts to Focus on Climate Change Impact

The SEC recently published a sample comment letter on climate change disclosure. The goal is to make companies aware of what is coming down the pipeline in terms of disclosure for climate change.

Earlier in July, SEC Chair Gary Gensler asked agency staff to submit a mandatory climate risk disclosures proposal for review. These reports may be required in an expanded Form 10-K and describe a company’s direct and indirect carbon emissions, including those by suppliers and partners.

SEC disclosure rules may require companies to disclose current & potential future material impacts of climate change on the company’s business and financial condition and performance.

According to the SEC, “Information related to climate change-related risks and opportunities may be required in disclosures related to a company’s description of business, legal proceedings, risk factors, and management’s discussion and analysis of financial condition and results of operations.”

For now, the SEC is asking companies to provide information about climate change’s direct and indirect impact on their business. This includes the impact of regulations.

In the future, companies may need to report on greenhouse gas emissions, the financial effects of climate change, and progress towards climate-related goals.

Gensler said he wants investors to have access to “consistent, comparable, and decision-useful disclosures.”

The tools to combat climate change are here. Between technological innovation and carbon offsetting, it is possible to achieve net-zero emission goals.

The SEC is expected to release more information by the end of this year…

Most Popular

From Wild Seaweed to High-Value Products and Carbon Credits

A wave of seaweed is covering the Caribbean coasts, killing wildlife while harming humans and tourism, but an innovative company is turning it into...

Ammonia: Carbon-Free Fuel for the Shipping Industry

Converting ammonia into hydrogen is an emission-free fuel to help decarbonize the heavy-duty and shipping transportation industry. The transportation industry is the biggest polluter in...

How The First Carbon Negative Nation of Bhutan Did It

As the world’s richest and largest emitting countries are struggling to reduce emissions, Bhutan became the first carbon negative nation. Fog-enshrouded temples nestled in mountainous...

Google’s Eco-Friendly Routing Comes to Europe

Google expanded its eco-friendly routing on its Google Maps to 40 countries across Europe. With Google Map’s eco-friendly routing, drivers can choose a route that’s...

The 5 Top Carbon Offset Project Developers

Are you looking to directly reduce your carbon footprint or support projects that cut emissions elsewhere? Then carbon credits allow you to do either...

The Top 3 Private Carbon Companies to Watch Right Now

Right now, the carbon space is heating up. Dozens of companies are jumping into what’s fast becoming one of the hottest spaces to invest...

Carbon Insetting: The Target of Scope 3 Carbon Offset Accounting

Carbon offsets are a well-known sustainability concept so you most likely have heard of them. But there’s a relatively new sustainable supply chain term...

Tonne Year Accounting for Temporary Carbon Storage

You most likely know the climate benefits of storing carbon and removing gigatons of it from the atmosphere to limit climate change. But we also...