SEC Proposed Climate Risk Rules: Private Companies Pay Attention

The Security and Exchange Commission (SEC) has proposed new regulations for disclosure of risks related to climate change in financial reports. The required information must include how the company’s financials are affected by these risks.  In addition, the company’s greenhouse gas (GHG) emissions must be measured and included in the company filings.  For the purposes of reporting, GHG must be divided into three categories: direct emissions from air discharges; electricity-related emissions; and upstream/downstream supply chain emissions. While the proposed regulations will apply only to publicly traded companies, it is another strong signal that all businesses will need to adapt to a warming climate to effectively participate in the changing economy.

Privately held companies should review their operations for GHG sources and electricity consumption, their real estate portfolio, and their industry supply chain to understand their climate and carbon benchmark, then develop a management plan. This will help privately held firms to secure their position and stay competitive by having sustainability and resilience data and information in hand when requested from anyone they do business with:  suppliers, customers, lenders, insurers, or prospective purchasers to name a few.  This is especially true for doing business with publicly traded firms, as they will look for compliant entities to partner with in the future.

The following services will provide your organization with the information needed to comply with regulatory and market-driven requirements for ESG.

• • Climate Resilience and Risk Assessments (Asset and Portfolio Level)
  • ESG and Sustainability Materiality Screening Assessments
  • Decarbonization Reports (Energy, Water, Waste)
  • Air Quality Assessments (Health and Safety Testing, Indoor Air Quality Assessment)
  • Task Force on Climate-Related Financial Disclosures Reporting
  • Global Real Estate Sustainability Benchmark Reporting

Nova Group Energy Services