Corporate controllers prioritize EU green mandates before SEC deadlines approach.

TLDR:

Corporate controllers are preparing for new mandates to disclose environmental impact to investors, focusing on carbon commitments and sustainability. European businesses are already facing broad reporting rules, while the US SEC has approved greenhouse gas emission disclosure regulations. Controllers are identifying data points, setting up safeguards, and working towards meeting new requirements.

• European companies are facing new sustainability reporting rules, including biodiversity and land use, while the US SEC approved regulations for greenhouse gas emission disclosures.
• Controllers are gearing up for the new reporting requirements by identifying data points, setting up safeguards, and ensuring reliable disclosures.

Article Summary:

Corporate controllers are preparing for significant changes in financial reporting to meet new mandates for disclosing environmental impact to investors, focusing on carbon commitments and water usage. European companies are already facing broad reporting rules, including sustainability issues like biodiversity and land use, while the US Securities and Exchange Commission has approved narrower regulations for greenhouse gas emission disclosures.

Controllers at companies like Accenture Plc and Johnson & Johnson are identifying reporting gaps, setting up safeguards, and ensuring reliable disclosures to meet the new requirements. The SEC’s finalized climate disclosure rule requires companies to report carbon emissions and climate change risks or opportunities in regulatory filings.

Companies are looking to raise the bar in their climate disclosures, with controllers and chief accounting officers extending required corporate disclosures to cover sustainability topics, pushing beyond traditional compliance work. Controllers are designing similar safeguards for climate, human resources figures, and environmental measures to protect data accuracy.

To comply with new rules, companies may need to upgrade reporting tools, provide training on data controls, and ensure documentation for auditors. Companies are advised to focus on significant disclosures, build on voluntary reporting experiences, and not wait to comply with multiple overlapping rules.