US-SEC
Standardisation of Climate-Related Disclosures
The proposed SEC climate rules are still in the proposal stage and haven't been finalised.
The rules would require public companies to disclose information on:
- Greenhouse gas (GHG) emissions: This includes Scope 1 (direct emissions from owned or controlled sources), Scope 2 (indirect emissions from purchased electricity, heat, or cooling), and potentially Scope 3 (indirect emissions from the value chain).
- Climate-related risks and opportunities: This would encompass physical risks (e.g., extreme weather events) and transition risks (e.g., changes in regulations, market trends).
- Governance and strategy: This would outline how the company manages climate risks and integrates them into its strategy.
- The proposed rules would be implemented in phases, with different deadlines for various company categories (accelerated filers, large accelerated filers, non-accelerated filers, and small reporting companies).
- The earliest compliance dates could potentially be in late 2023 or 2024.
Venture Capital Firms Bet Big on GHG Reporting Rules
With the world’s largest financial market playing catchup to the UK (who already had this in effect ten years ago) and the EU, and China, who have since enacted similar basic GHG reporting requirements, many venture capital firms have invested close to 1 billion betting on the rule closing, with several former SEC delegates and representatives joining boards of those nascent companies looking to prepare simple GHG footprints for the first time. As a 10 year old company, Rio can support you as a US enterprise, with global experience in navigating the complex landscape if you are a first time reporter.
Our Enterprise product can support you with the SEC rule today, whether you are impacted and need to consolidate reporting, or are looking to prepare in advance.
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