U.S. Securities and Exchange Commission (SEC)
Climate Impact & Sustainability Data (2022)
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Climate Change
Climate Goals & Targets
Environmental Challenges
- Significant majority of companies do not find climate change-related physical or transition risks to be material to their businesses.
- Complexities involved in tracking and reporting Scope 1, 2, and 3 GHG emissions.
- Inconsistency and incomparability of data due to permissible methods in GHG reporting frameworks.
Mitigation Strategies
- Proposed prescriptive rules to provide investors with consistent and comparable data.
- Safe harbor for liability for Scope 3 emissions.
- Phased compliance dates based on company size and filer status.
Supply Chain Management
Climate-Related Risks & Opportunities
Physical Risks
- Flooding, drought, wildfires, extreme temperatures, sea level rise
Transition Risks
- Regulatory policies, litigation, changing consumer preferences, investor and employee choices and demands, pricing shifts
Reporting Standards
Frameworks Used: GHG Protocol, Task Force on Climate-Related Financial Disclosures (TCFD)