Tahmina Day, MBA, CERP

If you’re thinking about compliance with the SEC’s new climate rule, be sure to read this article from Maura Hodge on how to approach assurance of your climate data disclosures and the requirements in the wider rule. And if it’s time to get started on measuring that carbon footprint - Watershed is here to help.  #SEC #ClimateDisclosure #ESG #GHG #Audit

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Today Nori published a draft Direct Air Capture + Storage methodology. This will be Nori's second methodology, adding to our original US Croplands soil organic carbon methodology and represents the next step on the expansion of our platform and products to become a diversified source of liquidity and price discovery in the #VCM cash spot market. The draft includes contributions from a marquee expert panel and is open for public comment. Our aim is to have the next version published in May. A six month timeline from initiation to official draft dramatically improves upon the industry norm of 18-24 months for registries to develop and publish a new methodology. As a commercially-driven issuer + registry + market Nori has the focus, means, and expertise to streamline, simplify, and accelerate historically complicated, cumbersome and slow aspects of #VCM market and product development. It is critical to remove impediments and bottlenecks for the market to scale. We are making this process public because it is also critical to collaborate with market constituents, and core to our ethos of transparency as a pillar of trust. Nori's DAC+S methodology prepares us for the launch of direct air capture carbon credits and the official version of Nori's Net Zero Tonne blending soil organic carbon + direct air capture carbon credits. We welcome feedback from market participants and invite #DAC project developers to get in touch with us to explore opportunities to collaborate on credit creation and distribution.

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My colleague, Adam Guerino, recently spoke on a panel with the Sustainability Management program at Columbia University. https://lnkd.in/givD2iSc While we're seeing more bond issuance for nature-based and biodiversity outcomes, impact measurement remains a headwind. In the panel discussion, Adam expressed the need for consistent and assessable biodiversity measures that can be priced – much like a ton of CO2 can be priced into a carbon credit. In order to scale nature-based solutions, private capital from investors and asset owners will play a large part. When you can assign a price to an outcome, it becomes much easier to finance solutions.  

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We have seen a flurry of regulatory activity on the part of U.S. Agencies lately, including the Environmental Protection Agency (tailpipe emissions, coal power plants) and the Federal Energy Regulatory Commission (transmission infrastructure planning). All of which stand to deliver strong environmental benefits. For context, under the Congressional Review Act, Congress has 60 legislative days to review and potentially cancel a newly promulgated federal regulation. That short time window takes all its relevance with the approach of US elections. In the background, two critical cases are being heard at the U.S. Supreme Court involving another Agency this time the National Marine Fisheries Service. How is this related? They may result in a significant weakening of the Chevron doctrine, a cornerstone of administrative law guiding judicial deference to regulatory agencies' interpretations of statutes. Who ends bearing the cost for observers on herring fishing boats suddenly takes a critical importance…! https://lnkd.in/gfZuHkXw

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Corporate emissions disclosure is on the rise — companies in the S&P BMI index disclosing Scope 1 & 2 emissions increased from 42% in 2020 to 58% in 2022 — and there's no doubt that standards and regulations coming down the pike will significantly improve the state of disclosure quality and coverage, to the benefit of investors. But with the proliferation of as-reported disclosures comes the potential for incompleteness or inaccuracy in the data that companies provide. In an analysis of S&P Global Sustainable1 Trucost Environmental data, we found that in 2022, only 32% of companies reported their Scope 1 emissions comprehensively — meaning they needed no supplementing to reflect the company’s actual emissions. About 46% of companies reported emissions data that was partial, requiring some adjustment to have a comparable scope, while the remaining 22% of companies reported emissions data that did not reflect their total emissions because it omitted significant portions of their global operations. In the category of disclosures that needed at least some level of adjustment, company-reported data can also miss the mark by a large margin: about one in four company-disclosed emissions values in 2022 were at least 50% larger or smaller than their S&P Global-adjusted figures. So while improved disclosure is a boon for investors, robust quality control processes are critical for accurate reporting of financed emissions. Read more about our approach here:

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Regulators are working on new rules demanding greater transparency on climate risk from companies in the US, the EU and China. New disclosure requirements will have far-reaching consequences, according to Michael Gerrard, Professor at the Sabin Center for Climate Change Law at Columbia Law School and a member of our thematic advisory board. https://lnkd.in/eBpf-7zR #environment #regeneration #thematicinvesting

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This article did a great job of explaining "green hushing" and "greenwashing" and the concerns raised with the politicization of ESG reporting. I agree with their Path Forward commentary on the need for continued address ESG despite its current challenges in the US since at a global level we are still seeing forward movement. #accelerateinnovation Thanks Ashly Pleasant for the share and the Weaver team for the info! https://lnkd.in/gF3n9fdV

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European Climate Risk Assessment Executive Summary

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A new report from the Urban Land Institute highlights the growing risks facing #coastal real estate, including #sea level rise, coastal storms, and erosion. Natalie Ambrosio Preudhomme shares the key highlights, including Moody's contribution on commercial mortgage-backed securities (CMBS) properties’ exposure to storm surge. Here are the key takeaways: ✅ Rising Risks: Coastal properties, especially on the US East Coast, are increasingly exposed to flooding, storm surges, and erosion, with potential damages rising into billions by 2050. ✅ Innovative Solutions: Developers are embracing resilience measures. For example, in Boston, The Eddy’s flood protection efforts cut expected damages from $20M to $1M, slashing insurance premiums. ✅ Nature-Based Infrastructure: Beyond seawalls, green infrastructure like oyster reefs and mangroves offer cost-effective, sustainable protection while preserving ecosystems. ✅ Resilience Pays Off: Properties investing in resilience see lower insurance premiums, reduced operating costs, and faster leasing – as shown by Miami’s Class A office tower and Boston’s Clippership Wharf. #moodys #CoastalResilience #CRE #ClimateRisk #RealEstate #storms #resilience

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I watched the EFRAG Board meeting with surprising fascination yesterday, which covered #MaterialityAssessment guidance under #CSRD regulations. Regulatory guidance sounds really dry. No doubt. But, the business implications are huge, and, I find it really pleasing to see nature and social protections written and applied through law. Some huge topics were covered that will really influence businesses: 🏭 ***Group vs. Subsidiary level analysis and reporting*** Materiality analysis cannot be prohibitively difficult for complex groups. But at the same time, we cannot leave loopholes for hiding business impacts. 📈 🤐 ***Balancing the Quantitative and the Qualitative/Stakeholder*** Strong emphasis has been placed on using data, especially data backed by #scientific consensus . But, good debate yesterday to also ensure guidance doesn't ignore the voices of affected communities and stakeholders. One surprisingly lively debate caught my eye. How can numerous small 'immaterial' impacts in each subsidiary amount to an aggregate 'material' impact for the Group? The answer was well articulated by valiant EFRAG Technical Group members, giving the example of mercury pollution, which I would elaborate could have a very material impact if polluted by subsidiaries operating in similar geographical areas. The same could apply for subsidiaries operating in the same water basin, etc etc. Employee health and safety was given as another example, with limited incidents (while severe for the victim), may be small in number in each subsidiary, but show a pattern and material topic when aggregated for the Group. Companies have geared up long-term programmes to prepare for #CSRD. We at GIST Impact are putting impact data and intelligence at the heart of these programmes to accelerate progress, maximise value opportunities, save costs and de-risk decisions.

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The U.S. Securities and Exchange Commission released its long-awaited ruling, The Enhancement and Standardization of Climate-Related Disclosures for Investors. The rules require public companies to include additional climate-related disclosures in their annual reports and audited financial statements, with the stated goal of providing investors with more complete and reliable information about the impacts of climate-related risks on a registrant's business strategy, results of operations, and financial condition. The rules will phase in from FY 2025 to FY 2033. All domestic and foreign companies publicly listed in the U.S., regardless of sector and industry, are required to comply with the SEC climate-related disclosure rules. They must also obtain a third-party attestation of any disclosed Scope 1 (emissions produced directly) and 2 emissions (emission produced indirectly). What can companies do to prepare for the new reporting requirements? 1- Conduct a gap analysis: Compare your company’s current disclosures against the potential required disclosures and identify areas that your company is not currently reporting on; 2- Map oversight responsibilities: Ensure your company has robust systems, controls, and procedures in place to support data collection, quality control, and reporting; 3- Collect GHG data: Collect disaggregated GHG emissions data across all operations, based on the GHG Protocols; 4- Implement ESG data management software: like #nasdaqMetrio Is your company ready to meet its non-financial ESG reporting needs? https://lnkd.in/e4gZnyhF

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Will company experience with internal controls over financial information such as SOX & COSO’s ICFR repeat itself with sustainability information? Excellent question! Found in this article from David Wray, MBA, ACA, CPA of DW Group When considering the flurry of sustainability disclosure regulations coming into effect and the inevitable compliance focus, many people have made the comparison to the implementation of the #SarbanesOxley Act of 2002 (another interesting comparison is to the General Data Protection Regulation (#GDPR) that came into effect in 2018, but I digress ;). From the article: "History tells us that change journeys take time before they reach their optimal benefit, the Sarbanes-Oxley Act (SOX) is a case in point. The Harvard Business Review’s The Unexpected Benefits of Sarbanes-Oxley (April 2006) found that “the burdens of implementing SOX for the first time, in 2004, were so great that…most entities….could give little time to developing and adopting policies and practices that went beyond literal compliance”. It went on to find that by 2006, “a number of companies…began…to standardize and consolidate key financial processes; eliminate redundant information systems and unify multiple platforms; minimize inconsistencies in data definitions; automate manual processes; reduce the number of handoffs…bring new employees up to speed faster…”. Sound familiar? Let's take a page from past experience and accelerate the paradigm shift happening in corporate reporting. Access the article: https://lnkd.in/eqq_55Hs #paradigmshift #transformation #sustainablefinance #sustainabilitydisclosures #esg

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Anybody else miss this new #deforestation bill introduced in US Congress during Climate Week? The "Combatting Global Deforestation Act" seems aimed at incentivizing #Nature-based Solutions (#NbS) in #EmergingMarkets through a #PublicPrivatePartnership that explicitly tries to be additive, and not duplicate similar initiatives by other governments. Here's what the Act does NOT seem to be doing: - No push for #disclosure of deforestation risk, deforestation-led #emissions (mostly the dreaded Scope 3 type), or #geospatial coordinates of suppliers, - No attempt to prohibit or limit #imports or government #procurement of deforestation-linked #soft #commodities - No mention of #dietshifts or even of #meat that is the main cause of #tropical deforestation. So, can't turn this into a meme: "They want to take away my #beef and turn me into a #soyboy!" Indeed, it is all about carrots, not sticks… So maybe it has a shot of passing?? And if it does, could it help other legislation that's got more sticks, like the #TREES Act in New York? "The legislation authorizes $3.5 billion over four years to finance forest conservation and restoration projects in developing countries, facilitated through long-term bilateral agreements between the State Department and governments or private entities that manage ecologically significant forested lands. These agreements will identify key challenges, ensure respect for human rights, support sustainable economic activities on protected lands, set clear conservation goals, outline practical strategies, designate responsibilities for involved parties, and provide assistance based on measurable project outcomes." https://lnkd.in/euAhrgxM https://lnkd.in/efRfDigz Thoughts? Jennifer Skene Shelley Vinyard Peter Lehner Richard Schrader Tony Lent Deborah Stern Brian Hensley Lara Gutiérrez Santander Jeff Conant Curtis Fisher Kerry Cesareo M Sanjayan

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In the latest edition of Financial World Magazine (behind a paywall), Joy Macknight draws from our work on demographic and labor trends impacting global supply chains in describing the "demographic time bomb" that will, in her words, change global trade flows and supply chain configurations. To quote her piece: "According to Yacine Rouimi, Principal Economist at S&P Global Market Intelligence, demographic movements of such magnitude at the global level are likely to bring changes in the way the global economy operates, both in terms of supply and demand. 'This means production centres and new trade relationships will need to be created in the rest of the world,' he adds." For our full piece: https://lnkd.in/en9fpA7y with Peter Tirschwell -- S&P Global S&P Global Sustainable1 S&P Global Ratings

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Explore how nature risk management can unlock business opportunities on our next #GARP Risk Institute webcast #biodiversity #TNFD

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🌍 Today is Earth Day. Are we doing enough to address climate change in Central America? The region's vulnerability to climate change is undeniable, particularly evident in the Central American Dry Corridor. This ecosystem, spanning across Costa Rica, Nicaragua, Honduras, El Salvador, Guatemala, and southern Mexico, faces recurrent droughts and intense rainfall, exacerbated by phenomena like El Niño. Some facts (not extensive) about how it affects the region, given some information from FAO and World Food Programme: - The Dry Corridor is home to over 11.5 million people, mainly engaged in agriculture as a primary source of income. This is the size of the population of Honduras, Dominican Republic or Portugal. - This area experienced five years of consecutive drought from 2015 to 2019, and 2024 recorded the hottest global temperature (https://lnkd.in/gTAUNnSW). -Climate change has devastating effects on crops, livelihoods, and food security. This climate vulnerability "destroyed more than half of the maize and bean crops of subsistence farmers," making the challenge of creating prosperity harder. At CABEI, we're taking action in the region's Dry Corridor and arid zones. We lead a partnership with FAO and #CCAD to mobilize funds from the Green Climate Fund to tackle this problem. "The program aims to strengthen the adaptive capacity and climate resilience of vulnerable, rural communities, including farmers and entrepreneurs, in the Dry Corridor region of Central America... through financing and technical assistance, the program will encourage private sector participation and create an enabling environment for the investment and uptake of large-scale ecosystem-based adaptation and water/energy-efficient technologies" (https://lnkd.in/gyFbPnnU). There is an urgent need for adaptation and mitigation efforts. As we mark Earth Day, let's start a conversation about climate resilience in Central America. How can we better protect vulnerable regions like the Dry Corridor? #EarthDay #ClimateAction #CentralAmerica #ClimateResilience #Cabei

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As we navigate the complexities of climate change, the recent NYT article underscores a troubling reality: our current efforts to combat environmental degradation remain insufficient. #ClimateAction #Sustainability #Leadership #Accountability

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