From disclosure to accounting, let’s push for climate action!

TLDR:

Key Points:

• SEC enacted new rules requiring companies to disclose climate risk information to investors
• Over 3,000 companies will be required to report financial costs of transitioning away from fossil fuels and risks from global warming

In a recent article, the SEC has enacted new rules that require companies to disclose their climate risk information to investors. This is part of a global regulatory trend that is making greenhouse gas emissions a material consideration for companies and investors. More than 3,000 companies, both domestic and foreign, will now need to report the financial costs of their transition away from fossil fuels and the physical risks they face due to global warming.

The rules, while welcomed as a step forward, have faced criticism for not including reporting requirements for indirect emissions, known as Scope 3 emissions. Despite this, the rules are seen as a crucial first step towards true climate accounting, allowing for accurate tracking of all emissions. The article also highlights a success story of Warc, a Ghana-based social enterprise that has secured $7.5 million for regenerative agriculture in West Africa.