ESG Regulatory Landscape in the US: 5 Pivotal Updates You Must Know

Find below what's new in ESG in the U.S.: five game-changing updates, including the SEC's resolute stance against greenwashing and California's pioneering climate disclosure bills. 👇

1️⃣ SEC enforces transparency

• SEC Chair Gary Gensler makes significant strides against backlash in Scope 3 reporting: He acknowledges that companies face hurdles in tracking emissions across their supply chains, making Scope 3 reporting less reliable. He notes that concerns arise also for smaller businesses, like farms, as they may feel pressured to provide emissions data.
• In March 2022, the SEC introduced rules requiring companies to disclose climate risks, mitigation plans, and related metrics. Scope 3 disclosure, which includes these emissions, is still in a developmental phase and lacks widespread adoption and reliability.
• Regarding the timing of the final rule: Gensler once more emphasizes thorough preparation over haste, considering the extensive public input received on the proposed rules.

2️⃣ 🌐 California leads the way

• Governor Newsom's commitment to sign the groundbreaking climate disclosure bills signifies significant progress towards heightened corporate accountability.
• California's climate disclosure law, if enacted, could align with SEC rules, potentially streamlining compliance for businesses. SEC’s chair stressed the importance of ensuring accuracy in reporting under these new rules.
• Dive Deeper: Our in-depth coverage of California's new climate disclosure bills provides comprehensive insights into this transformative legislation.

3️⃣ SEC’s against greenwashing in ESG funds

• The SEC's latest “Names Rule” requires funds with ESG-focused names to invest at least 80% in alignment with their themes, ensuring transparent investments.
• The rule will impact a staggering 76% of funds and they must adjust within 90 days. 💼💥

4️⃣ 🗽 New York Climate Week Highlights Solutions

• The emphasis on solutions during New York Climate Week underscores a collective commitment to action. With 600+ events, leaders are rallying for practical, scalable strategies to address climate challenges head-on. Check our full coverage of main discussions.

5️⃣ 🔍 Companies are not yet confident about reporting

• KPMG's latest survey reveals that only 1 in 4 companies are very confident about meeting their ESG reporting requirements. This data underlines the pressing need for clarity in understanding of regulatory frameworks and automated ESG data processing, from collection to reporting. Read the full survey here.

• Discover more: ESG Flo, the AI-powered platform, stands ready to assist your sustainability team in navigating these complex reporting requirements. Book a demo to see us in action.

🚀 Seize the opportunity to partner with ESG Flo and ensure your reporting aligns with global standards for a sustainable future. 🌟💼

#ESGCompliance #SustainableReporting #SEC 🌐🌿