Executive Summary
This trend report examines the emergence of sustainability goals as part of corporate environmental, social, and governance (ESG) initiatives. It also details the looming arrival of carbon emission and climate risk reporting mandates called for in draft rules issued in March 2022 by the U.S. Securities and Exchange Commission (SEC). Disclosure requirements have been in the works for some time, from both the SEC and the International Financial Reporting Standards (IFRS) Foundation, which guides financial reporting in more than 140 countries.
This report provides an overview of the disclosure requirements public companies are likely to face and the impact they will have on private partners and suppliers. It also provides constructive, proactive advice that boards; C-suite leaders; and sustainability, accounting, audit, finance, investor relations, legal, and risk teams should consider as they prepare for an era in which the reporting of carbon emissions and climate risks will evolve from a voluntary effort into a mandatory activity.