Back on March 21, 2022, the U.S. Securities and Exchange Commission (SEC) proposed rules that would enhance and standardize climate-related disclosures provided by public companies—two years and unquantified lobby and legal dollars later, the final SEC Climate Disclosure Rules were announced today.

More and more, organizations are turning a keener eye toward ESG initiatives. Though the Social Governance pillars are no less important, it’s the Environmental cornerstone of ESG that is commanding more scrutiny—more specifically, greenhouse gas (GHG) emissions.

With the escalation of climate and various environmental, social, and governance (ESG)-related risks, organizations are now actively setting bold sustainability objectives, and in recognition of the related concerns in their supply chains over which they lack control, companies are also asking for cooperation from their vendors in addressing their emissions to further minimize their environmental impact.

Navigating the world of carbon assurance and greenhouse gas (GHG) inventories can be a complex task for any organization. However, with the guidance and expertise provided by Schellman, a trusted leader in assurance and auditing, preparing for a smooth GHG assurance becomes a manageable and essential endeavor.

In our rapidly evolving world, climate change has become an undeniable reality that affects every corner of the globe. As humanity grapples with the consequences of its actions, the responsibility to halt and reverse climate change rests on our shoulders. Businesses, spanning all sectors, are stepping up to the plate, recognizing the urgent need to measure their carbon footprints.

Unlike Scope 1 and Scope 2 emissions—which are the direct and purchased energy emissions of a corporation, respectively—Scope 3 emissions are indirect emissions generated from activities of assets not owned or controlled by the reporting organization.

For organizations seeking to build robust environmental, social, and governance (ESG) programs, the Carbon Disclosure Project (CDP) provides one such framework that can help with global disclosure of your environmental impact. Should you choose to adhere to this standard, you would need to be assessed, after which you would receive scores regarding your environmental stewardship.

A new landmark in corporate climate change legislation, California Senate Bill (SB) 253, the Climate Corporate Accountability Act, has just been passed in the California Senate, and—now that it's been signed into law by the governor—it will mandate that the applicable companies report their direct greenhouse gas emissions as well as those generated by their utilities.