Meet New SEC Rules with GHG Inventory Assurance with SRI
In March 2022, the SEC released its long-awaited proposal for Climate-Related Disclosures. The intent of the SEC’s proposal is to provide “consistent, comparable, and reliable” climate-related data for investors to use, while attempting to limit the compliance burden on reporting companies. This proposal applies directly to public companies, as well as private companies which have publicly traded clients, as these public companies begin to account for their Scope 3 emissions (supply chain).
The SEC is attempting to drive toward a level of standardization in climate-related disclosures focusing on two methodologies/reporting frameworks: Greenhouse Gas Protocol (methodology for greenhouse gas inventory calculation) and Task Force on Climate-Related Financial Disclosures (TCFD). TCFD provides a framework to evaluate material climate-related risks and opportunities with short-, medium- and long-term financial impacts on your business. The framework includes eleven disclosure topics related to four themes to assess, manage, and disclose climate-related financial risks: governance, strategy, risk management, and metrics and targets.
If the proposed disclosures go into effect by December 2022, the compliance dates to have the proposed disclosures included in annual financial reports would be:
- For large, accelerated filers: Fiscal year 2023 data reported in 2024 filings*
- For accelerated and non-accelerated filers: Fiscal year 2024 data reported in 2025 filings*
*Companies subject to the proposed Scope 3 disclosure requirements would have one additional year to comply with those disclosure requirements
Companies will be held Accountable for the Accuracy and Validity of their Data
Don’t risk inaccurate GHG (Greenhouse Gas) inventory reporting. Work with SRI to validate your dataset to ensure you’ve met the SEC’s requirements. SRI frequently works with the TCFD and GHG Protocol frameworks and can evaluate your tracking and data collection methods and results for assurance of the quality, transparency, and accuracy of the reporting data that you worked hard to collect and compose. Receiving independent 3rd-party data validation of reporting data can increase stakeholder confidence, improve an organization’s market rating, and minimize risk. SRI is a qualifying assessment body for these Climate-Related Disclosures, the audit does not require a certified public accountant.
Work with SRI, a Qualified, Independent Assurance Body
SRI has been in business since 1991, and since the inception SRI has been a leader is sustainability and environmental assessments, including Greenhouse Gas Inventory Assurance. With decades of experience and engineers on staff, no firm can provide a better GHG Inventory Assurance assessment than SRI. Contact us today to get started by submitting an SRI Request a Proposal Form, emailing info@sriregistrar.com, or calling 724-934-9000.
Not Quite Ready for a Verification Assessment?
Through our affiliate company, 3R Sustainability, GHG Inventory Experts can help you navigate the TCFD and GHG Protocol frameworks and prepare you for assurance, so you can be confident when the time comes!