· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on Fortune or enjoy below:
🗞️ Driving the news: The U.S. Securities and Exchange Commission (SEC) has issued a new ruling on climate disclosures, mandating many companies to report greenhouse gas emissions and climate-related risk
• The final version, however, omits Scope 3 emissions and does not require all public corporations to disclose direct emissions, leading to mixed reactions and legal challenges
🔭 The context: Business leaders across various sectors provide their insights on the ruling, highlighting its impact on global compliance requirements, the relevance of Scope 3 emissions despite their exclusion, and the ongoing necessity for companies to adapt to climate disclosure norms regardless of the SEC's decision
🌍 Why it matters for the planet: The SEC's ruling, despite being watered down, represents a step towards greater transparency in how businesses report their climate impact
• This move is essential for investors, policymakers, and the public to understand and address the risks and opportunities associated with climate change
⏭️ What's next: Companies are encouraged to view these new reporting requirements as part of a broader strategy for sustainability
• As climate disclosures become the norm, businesses must prepare for a future where transparent, comprehensive reporting on environmental impact is not only regulated but expected by stakeholders
💬 One quote: "Organizations complying with the E.U.’s CSRD requirements might be doing 75% of the work to comply with the SEC. This overlap raises the question of equivalence and whether jurisdictions can recognize other rules, reducing the burden on companies." - Maura Hodge, KPMG U.S. ESG audit leader
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