The Securities and Exchange Commission (SEC) proposed new reporting requirements that include climate-related disclosures in their reporting that could impact your business and ESG reporting. With the evolving climate risk and energy regulations, it is crucial to understand climate-related risks in the due diligence process in order to obtain the full picture of your property to avoid current liability, position your property well for future compliance, and increase the marketability of your assets.
Understanding SEC requirements
On March 21, 2022, the U.S. SEC voted in favor of standardized regulations requiring public companies to disclose information on climate-related risks. These risks will likely impact companies’ climate-related targets and risk management plans under development, as well as processes already in place. Companies would also need to report their Scope 1, 2 and—for those whose Scope 3 emissions are material or whose climate targets include them—Scope 3 greenhouse gas (GHG) emissions. This should provide investors with the information needed to assess a company’s risk embedded in its value chain as well as the risk level during the transition to net zero. Companies would also be allowed but not required to disclose information about climate-related opportunities.
Guiding you through reporting requirements
Understanding climate risk is complex, requiring significant data input and evaluation by experienced professionals. Most existing solutions from aggregated data providers supply data that’s too generic. They don’t provide the recommendations or insights into actions you can take to reduce risk. EBI’s climate risk solutions set you up for success, ensuring you have the information and the next steps you need to maintain compliance and achieve your ESG goals. As a trusted partner for organizations implementing ESG initiatives, EBI is your one-stop-shop for ESG and due diligence to work with you through your project’s life cycle.
Our expertise includes, but is not limited to:
- Task Force on Climate-Related Financial Disclosures (TCFD) reporting
- Global Real Estate Sustainability Benchmark (GRESB) reporting
- Climate Change Analysis Reports (CARs) and Climate Change Risk Assessments (CCRAs)
- ESG and Sustainability Checklists
- ESG strategy, materiality assessments and reporting
- Energy and water use, plus GHG emissions benchmarking
Separate from any SEC reporting requirements, climate change has become synonymous with financial risk for publicly and privately owned companies. While an increase in the intensity and frequency of natural disasters and the rise in global average temperature have led to a surge in property damage, the transition to a lower carbon economy poses its own challenges. You need to be fully informed regarding your assets’ vulnerability to climate-related risk as well as actions to mitigate that risk and increase resiliency.
Want to learn more?
Reach out to our experts to learn how we can support you on meeting the evolving SEC requirements.