ESG & Compliance Trends – GHG Emissions
As 2023 is quickly approaching, many are awaiting news of the pending Securities and Exchange Commission (SEC) ruling on public company climate disclosures of greenhouse gas emissions. Rumors have swirled as to the delayed timeline, but it would appear technical issues with the feedback collection process as well as the overwhelming number of public comments submitted have resulted in the SEC extending the feedback review period. No updated schedule has been made public and the silence is building the suspense.
Many expect any climate disclosure rule to face immediate legal challenges and are biding their time and counting on subsequent delays in enforcements and penalties. Meanwhile several large bellwether organizations have made pro-active and publicized aggressive emissions goals as part of their brand appeal. Still most organizations are determining their approach somewhere between these two stances. Even with the SEC ruling currently postponed, now is a good time for each potentially impacted public organization to determine their approach. This is a grace period that allows time to tackle challenges like improved emissions data tracking, goal setting, and planning constructive means of reducing emissions internally and within the supply chain. It is tempting to wait-and-see or “kick the can down the road” and deal with emissions tracking and reporting when there is more detail available about what will be required, but with fuel access and prices continuing to impact the supply chain coming up with ways to reduce your carbon footprint makes for a good business spend strategy and a good environmental approach.
Even with the SEC delays, there are still US state and regional disclosure rules as well as international regional laws which may require tracking, disclosures, and year-over-year improvements. While critics will make noise that the SEC is overstepping their mission, the reality is that the public is seeking more transparency and corporate commitment to improved environmental practices.
The most flexible and agile stance is to get started with at least some understanding of current emissions. This includes internal and supply chain impacts on greenhouse gases and total carbon footprint. iQuantum ESG & Sustainability Compliance can help organizations preparing for regulation or those pro-actively seeking to improve their environmental impact. Gain an understanding of total carbon footprint based on internal and supply chain data. Put in place the data tracking and dashboards that will help inform, collaborate, and achieve your greenhouse gas emissions goals.