Good.Lab’s Post

How do smart companies reduce reputation and non-compliance risks? They get ahead of regulations. 2025 will be a critical year for preparing for California's climate disclosure regulation (#SB219). Companies that start today will ensure they are prepared to meet the climate risk + Scope 1 and 2 emissions reporting and limited assurance needs in 2026. Check out Good.Lab's new guide to making the most out of 2025 to ensure compliance with California's climate rules in 2026.

Are you aware of California’s updated ESG and climate risk reporting requirements? With the approval of Senate Bill No. 219, organizations are required to disclose greenhouse gas emissions and climate-related financial risks starting January 1, 2026. Stay informed about these critical changes: https://okt.to/Ujp6W8 #ESG #ClimateRisk #GreenhouseGas #Sustainability

Are you aware of California’s updated ESG and climate risk reporting requirements? With the approval of Senate Bill No. 219, organizations are required to disclose greenhouse gas emissions and climate-related financial risks starting January 1, 2026. Stay informed about these critical changes: https://okt.to/IekCsq #ESG #ClimateRisk #GreenhouseGas #Sustainability

Are you aware of California’s updated ESG and climate risk reporting requirements? With the approval of Senate Bill No. 219, organizations are required to disclose greenhouse gas emissions and climate-related financial risks starting January 1, 2026. Stay informed about these critical changes: https://okt.to/M0YOtG #ESG #ClimateRisk #GreenhouseGas #Sustainability

2024 marks a new frontier for climate reporting, with many companies facing their first calls for regulated disclosure. For companies already confident in their reporting, these developments serve as an opportunity to focus on oversight and materiality. After two years in the making, the Securities and Exchange Commission’s (SEC) Climate Rule was approved in March, while 2024 marks the first data collection year for the European Commission’s Corporate Sustainable Reporting Directive (CSRD). The past year also saw California call on companies doing business in the state to report on climate risks and opportunities, starting in 2026. #climatereporting2024 #ESGdisclosure #sustainableinvesting

Because it seems inevitable that #climate disclosures will soon be required, here are three recommendations for how companies can prepare themselves for a rigorous reporting regime. Donnelley Financial Solutions (DFIN) https://bit.ly/4eMZKyK

After years of discussion, the SEC has finally released climate disclosure rules. I am proud to have worked with an all-star cast at ERM to create this Market Alert, unpacking the new rules: https://lnkd.in/gckyXRsA. As I think about the new rules, a few ideas come to mind: - The SEC leveraged two mammoths of climate reporting in their rules: TCFD and the GHG Protocol. This gives companies not only clarity in process and alignment across organizations, but also a starting point to jump in. - While the final rules delay Scope 1 and Scope 2 reporting, and eliminate the Scope 3 reporting requirements--a company cannot sleep on these data. Emissions data create the foundation for the risk management, strategy, and governance discussions required in S-K reporting. - Due to the foundational TCFD and GHG Protocol elements, the climate rules align well with emerging regulation outside the US, such as CSRD and adoption of IFRS. Companies can use this to their advantage to reduce the overall reporting burden. Having supported dozens of companies with sustainability strategy and disclosures over more than a decade--I would be remiss if I didn't add in one final thought: reporting is a management tool. We should not think of the SEC climate rules as an additional burden, but rather a roadmap by which to mitigate risk, realize opportunity, and design business and product strategies that will last into the next hundred years. After all, that's the true meaning of sustainability! Rahul Arora, Luiz Guimaraes, Beth Wyke, Jennifer Herbruck Klie, Mark Lee, Robert LaCount, Matt Klein, Michael Cheatham, P.E., MSCE

As reported, the SEC finally adopted the long-awaited climate disclosure rule yesterday – mandating scope 1 and scope 2 emissions reporting for most public companies. While scope 3 is not included, it’s important to note that the SEC has nevertheless mandated (material) climate risk disclosures in registration statements and annual reports. What does that mean? Companies must declare their "material” climate-related risks, as well as any activities to mitigate or adapt to those risks. Worth noting -- companies that are already reporting to CDP and utilizing key frameworks (e.g. TCFD) will be familiar with this requirement. So, what's next? Over the next 6-12 months, we will see a barrage of lawsuits. We will also see a growing divide between the *leaders* – companies pushing forward with sustainability commitments and doing what’s necessary to satisfy increasing stakeholder demands – and the *laggards* who will continue to delay until the inevitable. It’s also important to remember that the SEC's new rule pales in comparison to California's new climate disclosure laws, introduced in October, 2023, which are far more stringent re: full value chain emissions reporting. At the end of the day, regulatory changes will take time but stakeholder concerns and demands will not wait. They will increase and intensify. Hiding and dodging is not an option. So, are you a leader or a laggard? Are you pushing forward or standing still? Are you taking action or delaying? What is the (financial, environmental and reputational) cost of your delay and inaction? #SEC #ESG #corporatesustainability #sustainability #emissions #emissionsreporting #climate #environment

This month, the SEC released its sustainability rule for climate risk disclosures. The "Enhancement and Standardization of Climate-Related Disclosures" require that public companies provide detail on their climate risks and emissions. This requirement starts in 2025. Check out below for more information and how this may impact your #business. 👇👇👇

The California climate disclosure regulation marks a significant milestone towards a more sustainable future. This move signals a growing awareness of the importance of environmental, social, and governance factors in shaping corporate responsibility. Embracing these standards not only benefits the planet but also strengthens businesses by fostering transparency and accountability. ❇️ Read our overview of the requirements: https://okt.to/FOcLYV #AssetManagers #PrivateDebt #PrivateEquity #ESG #SEC #ClimateDisclosures