05/29/2024
Have you read the latest MVR #107?
Take a look at one of the lead articles: Rising Regulatory Focus on Climate Disclosures Amplifies Startup Roles
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In March 2024, the US Securities and Exchange Commission (SEC) adopted rule changes requiring companies to disclose certain climate-related information, ranging from greenhouse gas emissions to expected climate risks to transition plans. The move is aimed at providing investors with consistent, comparable, and decision-useful information for making investment decisions, and consistent and clear reporting obligations for issuers. This rule change is propelling start-ups that offer carbon accounting and analytics services to address the complex and time-consuming process of measuring carbon emissions across a company’s operations, energy consumption, and suppliers.
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Carbon disclosure regulations are surging around the world. In September 2020, New Zealand led the global stage by becoming the first country with an announcement to mandate climate disclosures. In 2021, the Canadian Securities Administrators proposed a climate-related disclosure requirement for financial institutions and ESG-related requirements for large and listed entities. In January 2023, the EU’s new Corporate Sustainability Reporting Directive entered into force. In June 2023, the Australian Treasury released a Climate-Related Financial Disclosure Consultation Paper, outlining the requirements that certain Australian companies may have to follow in the future related to climate disclosures – as soon as 2024. In January 2025, new climate-related disclosure requirements for issuers under the Hong Kong Stock Exchange will come into effect.