illuminem summarizes for you the essential news of the day. Read the full piece on Forbes or enjoy below:

🗞️ Driving the news: The Securities and Exchange Commission (SEC) has finalized its climate risk disclosure rules, prompting businesses, especially those operating substantially in California, to undertake significant steps to comply
• These regulations aim to provide investors with reliable, consistent, comparable, and timely data on the financial impacts of climate risks

🔭 The context: Triggered by the financial repercussions of extreme weather events, which saw a record number of costly disasters in 2023, the SEC's initiative seeks to standardize climate-related financial disclosures
• Investors demand more detailed reporting on how climate impacts affect businesses, driving the SEC to formalize these rules

🌍 Why it matters for the planet: Enhanced transparency on climate risks and the financial relevance of climate impacts can boost investor and stakeholder trust
• This trust is crucial for mobilizing funds toward sustainable and decarbonized economic practices, ultimately supporting global efforts to mitigate climate change

⏭️ What's next: Despite legal challenges, the demand from investors for this type of information remains strong. Companies are encouraged to begin the complex preparation process for reporting immediately
• Early compliance not only aligns with investor expectations but also unveils inefficiencies and opportunities for competitive advantage in a rapidly decarbonizing economy

💬 One quote: "Regulation can be a catalyst for transformation, for business transformation because this is so much more than a disclosure and compliance exercise," says Kristen Sullivan, a partner at Deloitte

📈 One stat: 2023 witnessed the highest number of extreme weather events costing over $1 billion each, totaling more than $93 billion in damages, underscoring the financial impact of climate risks on businesses