Name: The new US SEC climate disclosure rule and what it means for you
Uploaded: 2024-03-08T19:36:58.828Z
Duration: 219.13

STTP#3 - SEC update v1_2.mp4

STTP#3 - SEC update V2.vtt

English

{{00:00:00}}
Recently, you might've seen the news that the U S Securities and
Exchange Commission came out with a new climate disclosure law.

{{00:00:08}}
It will help level set information while it is the bare minimum that is happening, especially
considering what's going on in the EU and even in the state of California, it will at least raise

{{00:00:20}}
the conversation around greenhouse gas accounting and potential climate related financial risks.

{{00:00:27}}
So let's get straight to the point and talk about it.

{{00:00:34}}
The SEC proposed a rule around greenhouse gas accounting.

{{00:00:38}}
Scope one, two, and three and climate related financial risk reporting a number of
years ago it was delayed for a long time as a lot of comments came in and back and

{{00:00:51}}
forth from and just yesterday, they finally approved sort of a reconfigured rule.

{{00:00:57}}
It's pretty much we're doing scope one and two greenhouse gas accounting,  in the U.

{{00:01:02}}
S.

{{00:01:03}}
and a lot of the other quote, unquote,  climate financial risks that could be
there  to be reported and  stated that A) this was due to climate not climate change.

{{00:01:16}}
Importantly enough, but climate

{{00:01:26}}
It's significant because the U.

{{00:01:27}}
S.

{{00:01:28}}
Federal government said we need to do something about climate.

{{00:01:32}}
So that's the significance.

{{00:01:34}}
The actual reporting mechanisms and what's happening considering what's happening with
CSRD and the ESRS  in the EU, what's happening, even in the United States in California

{{00:01:46}}
and elsewhere around the world and what financial institutions are asking for already.

{{00:01:51}}
It's not huge from a standpoint of, it's going to force companies to do all
these new things because a lot of them are already doing it due to these other

{{00:02:00}}
regions having more in-depth, more requirements than what's required in SEC, but
it's more of a signal to the marketplace that the federal government,  the U.

{{00:02:11}}
S.

{{00:02:11}}
federal government is recognizing that there's a climate issue.

{{00:02:16}}
There's lots of different levels of companies, both in the CSRD and the EU and
in the SEC that don't have to report so there are a lot of opt outs,  different

{{00:02:28}}
size companies, both revenue and people's sizes that allowed them to be opted out

{{00:02:33}}
Or new companies for instance that aren't, you know, are looking
to go public potentially they can opt out of some of the SEC rules.

{{00:02:41}}
But again, with the coverage that CSRD has,  in their requirement, if you're
meeting the CSRD in the EU, You're going to be meeting what the SEC just passed

{{00:02:53}}
people that are looking to meet both, look at CSRD and you're going to be fine.

{{00:03:01}}
A lot of this is all based on greenhouse gas protocol.

{{00:03:04}}
So again, if you're following the greenhouse gas protocol and where your data is coming
for scope one and scope two, that's where you get into the assurance side of things.

{{00:03:12}}
So there is different levels of assurance for different companies again, again, the striation of
the different size companies needing different levels of limited assurance and reasonable assurance.

{{00:03:26}}
So following the greenhouse gas protocols, you're going to be
able to get the data that you need out of your systems to report.

Recently, you might've seen the news that the U S Securities and
Exchange Commission came out with a new climate disclosure law.

It will help level set information while it is the bare minimum that is happening, especially
considering what's going on in the EU and even in the state of California, it will at least raise

the conversation around greenhouse gas accounting and potential climate related financial risks.

So let's get straight to the point and talk about it.

The SEC proposed a rule around greenhouse gas accounting.

Scope one, two, and three and climate related financial risk reporting a number of
years ago it was delayed for a long time as a lot of comments came in and back and

forth from and just yesterday, they finally approved sort of a reconfigured rule.

It's pretty much we're doing scope one and two greenhouse gas accounting,  in the U.

and a lot of the other quote, unquote,  climate financial risks that could be
there  to be reported and  stated that A) this was due to climate not climate change.

Federal government said we need to do something about climate.

The actual reporting mechanisms and what's happening considering what's happening with
CSRD and the ESRS  in the EU, what's happening, even in the United States in California

and elsewhere around the world and what financial institutions are asking for already.

It's not huge from a standpoint of, it's going to force companies to do all
these new things because a lot of them are already doing it due to these other

regions having more in-depth, more requirements than what's required in SEC, but
it's more of a signal to the marketplace that the federal government,  the U.

federal government is recognizing that there's a climate issue.

There's lots of different levels of companies, both in the CSRD and the EU and
in the SEC that don't have to report so there are a lot of opt outs,  different

size companies, both revenue and people's sizes that allowed them to be opted out

Or new companies for instance that aren't, you know, are looking
to go public potentially they can opt out of some of the SEC rules.

But again, with the coverage that CSRD has,  in their requirement, if you're
meeting the CSRD in the EU, You're going to be meeting what the SEC just passed

people that are looking to meet both, look at CSRD and you're going to be fine.

A lot of this is all based on greenhouse gas protocol.

So again, if you're following the greenhouse gas protocol and where your data is coming
for scope one and scope two, that's where you get into the assurance side of things.

So there is different levels of assurance for different companies again, again, the striation of
the different size companies needing different levels of limited assurance and reasonable assurance.

So following the greenhouse gas protocols, you're going to be
able to get the data that you need out of your systems to report.

Straight to the point

Trend

The US Securities and Exchange Commission (SEC) climate disclosure rule was finally passed on Wednesday the 7th, following over two years of delays since the initial draft. The rule notably lacks requirements for scope 3 reporting and presents more streamlined requirements for scope 1 and 2. However, the significance of this development and its alignment with climate reporting standards in Europe remain key questions.

Josh Jacobs, Sustainability Director of WAP, gets straight to the point on the matter.