Mitigate Risks within your Supply Chain by assessing and analysing how secure your Vendors are. Go further by Monitoring and Managing Risk
Assess the Controls you have within your organisation that are employed to manage your Risk.
Build in internal compliance policies or use existing frameworks if you're operating in a Regulated Industry for New & Ongoing projects. Then simply Identify Assess, Manage and Assign Risk!
Identify which three of the ESG factors pose a Risk to your organisation or Investment & which ones help you achieve your Sustainable Development Goals.
What is the SEC's Climate Proposal?
On the 21st March 2022, the US Securities and Exchange Commission (SEC) approved a long-awaited climate-related disclosures proposal for public listed companies. The proposal would require registrants to disclose:
Though the SEC regulates public companies, these new rules could still impact private markets.
Firstly, the proposed disclosures include a company’s indirect emissions from upstream and downstream activities. This would effectively mean that private companies which sell products or services to public companies will need to produce GHG emissions data on request. In many cases, small and medium-sized enterprises are unlikely to have the in-house capabilities to report on their ESG performance and so we may see greater reliance on outsourcing.
Secondly, the proposal does not include any incremental phase-in allowance for newly public companies. This will place more pressure on private companies to ‘get their house in order’ before entering public markets. In some cases, it could even encourage companies to delay plans to go public in favour of the regulatory haven that private markets provide.
Finally, these new rules may drive market expectations to include the same level of disclosure for private companies.
The climate proposal will remain open to public comments, which may see its scope curtailed. Nonetheless, it is clear that once finalised, these new disclosure rules will place greater pressure on both public and private companies to ensure better gathering of data and intelligence on their climate-related risks and opportunities.