On March 21, 2022, the U.S. Securities and Exchange Commission (SEC) issued a new regulatory proposal that would mandate climate disclosure within financial reports. The comprehensive document is expected to be approved soon. So, how can your company prepare for the SEC climate rule? In this article, we’ll explore what actions your company should take and how WatchWire can help.
Check out this related article on what you can expect to see happen once the SEC climate disclosure proposal is approved, including areas of reporting that will be affected (and how), regulatory changes to be aware of, and future predictions. And don’t miss our Complete Guide to the 2022 SEC Climate Disclosure Rules!
5 Things You Can do to Prepare for the SEC Climate Rule
- Be willing to invest in the talent and tech needed to comply with new reporting mandates.
- Understand new liability risk associated with false reporting of sustainability and carbon accounting information. Risk will be greater when tying sustainability reports to your financial statements and 10-k filings.
- Get familiar with timelines. If all goes to plan, larger companies will submit climate disclosures in 2024 for their 2023 fiscal year. There are nuances to reporting timelines depending on company size within the SEC document.
- Start collecting relevant data and integrating this into operational strategy as soon as possible.
- View this change as an opportunity to connect with stakeholders and build trust in your growth strategy.
How WatchWire Can Help Your Company Prepare
It will be nearly impossible to comply with the SEC climate rule without using unifying technology and a platform that facilitates the collection of data, calculates the carbon metrics the SEC is asking for, and reports investor-grade data within multiple areas, ready for audit scrutiny.
WatchWire is a market-leading energy and sustainability data management platform that uses cloud-based software to collect, automize, and analyze utility, energy, and sustainability data metrics. WatchWire streamlines, automates, and standardizes your sustainability reporting process by integrating directly and/or providing reporting exports to ENERGY STAR Portfolio Manager, LEED Arc, GRESB, CDP, SASB, GRI, and more. The platform provides customizable dashboards, which allow asset managers, sustainability managers, engineers, and more to monitor individual key performance indicators (KPIs) and create custom views for specific use cases. WatchWire provides:
- Automated collection and organization of all energy, utility, sustainability, and emissions data through real time metering
- GHG emissions tracking
- Carbon offset view of power purchases from the grid vs. on-site renewables generated vs. off-site RECs
- Easy collaboration with external assurance agencies and auditors, allowing for quality data collection
- Opportunities to implement projects (track EEMs) and monitor distributed energy resource production (e.g. on site solar)
- Goal tracking (e.g. net zero, SBTi, waste diversion)
Interested in learning more about WatchWire? Request a free demo or visit our resource library.
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