SEC Proposes New Rules for Mandatory Climate-Related Disclosures

The Securities and Exchange Commission (SEC) recently announced that it has formally proposed changes aimed at standardizing mandatory climate-related disclosures for registrants. The new reporting requirements seek to provide investors with enhanced data on an organization’s climate-related activities and efforts to help assess financial risk. Under the new rules, SEC registrants would be required to report this data at the time of their registration and in periodic filings. The proposed mandatory disclosures include the material impact of climate-related risk on business operations and financial condition, certain climate-related metrics in audited financial statement notes, and data on greenhouse gas emissions.

SEC Chair Gary Gensler shares, “Today, investors representing literally tens of trillions of dollars support climate-related disclosures because they recognize that climate risks can pose significant financial risks to companies, and investors need reliable information about climate risks to make informed investment decisions.” The proposed disclosures would give investors consistent and comparable data to measure their risk against.

The rule changes require registrants to share information how they manage climate-related risk processes, any material impact that identified climate-related risks could have on a business’ operations, financials, strategy or outlook, and the short- and long-term impact of climate-related events on their budget. For registrants with established climate-related targets or plans, the new rules would also include reporting on their existing plans to help investors better understand the procedures they have in place to mitigate climate risk.

Furthermore, the proposed changes would require disclosure of greenhouse gas emissions. These disclosures include direct emissions (Scope 1) as well as indirect emissions from purchased electricity (Scope 2). Material upstream and downstream supply chain emissions (Scope 3) reporting would also be required if the registrant has established greenhouse gas emissions targets or Scope 3 emissions goals.

The goal of the proposed disclosures is to provide consistent, comparable, decision-useful data to investors about an organization’s climate-related risks, uncertainties, impacts, and opportunities. If implemented, the new rules will include a phase-in period, and compliance deadlines will be dependent on a registrant’s filing status.

Public input is currently being accepted from investors, registrants and other market participants on the proposed climate-related disclosures. Complete the public comment form or send an email to the SEC to participate in public comments.

At Novitium Energy, our eco-friendly commercial solutions will save you time and money now and prepare you for the future. We offer complimentary comprehensive assessments to evaluate your energy needs, including cost analysis, an onsite audit, available government incentives, and financing options. We work closely with you to develop turnkey solar solutions that make sense for your business. Contact us today for a free assessment!

Regulators, investors and consumers are demanding that businesses commit to real renewable energy goals. Hundreds of companies – including Amazon, Bank of America, ExxonMobil, General Motors, PepsiCo, Target, Verizon, and Walt Disney – have already pledged to achieve greener standards¹ by implementing clean energy solutions. Novitium’s modular photovoltaic systems make it easy for commercial clients of any size to meet the demand and be prepared for a greener future. 

Novitium CEO Jeremy Conner states, “Novitium is Latin for ‘new beginnings.’ The world is moving into a new era in renewable energy, and we are proud to be a part of it. We are committed to helping all businesses create custom solar solutions that are a win-win for the environment and their bottom line.”

About Novitium Energy

Novitium Energy, A National Energy Partners Company, is a nationally renowned renewable energy development company dedicated to bringing turnkey solar solutions to nonprofit and commercial organizations. Founded in 2009, National Energy Partners helps clients realize the benefits and savings of clean energy while reducing their up-front capital investment. They offer complimentary comprehensive assessments, including cost analysis, onsite audits, available government incentives and financing options, to evaluate commercial energy needs and develop strategic solutions tailored to each client. For more information, visit NovitiumEnergy.com, call (856) 273-5761 and follow Novitium Energy on LinkedIn.