Let’s Continue The Conversation On Green Reporting: Is It Important, And Can Simple Changes Strengthen Green Policies?
- The SEC proposed “green” reporting for all stocks traded on the public market. Many companies have already begun implementing this policy.
- Reporting will protect shareholder interests, as the world continues to transition towards a net-zero future.
- Companies who haven’t initiated “green” status by 2030, 2050 at the latest, could face financial repercussions — especially if they wait until the last minute to do so.
- Transparent reporting will further minimize the “greenwashing” that takes place amongst several companies that claim to be ESG-friendly.
- Simple changes to operating equipment can strengthen green policies and heighten support from shareholders
The Securities and Exchange Commission (SEC) has been exploring options that encourage companies to act more sustainably by reporting all environmental, social and corporate governance (ESG) activities to shareholders.
In March, the Commission proposed measures that would require all publicly-traded companies to report all green initiatives in an effort to curb detrimentally high carbon emissions and to promote greener investments for the future of this country — and the world.
Proposed SEC rules would be established to provide investors with a clearer picture of the risks that climate change might pose to the corporate bottom line and any long-term plays in that company. While a number of companies are already providing this data voluntarily, their changes aren’t likely to actually take effect before 2024 — with the largest public companies reporting in 2024 and the smallest in 2026.
The SEC hopes that these new requirements will compel “big business” to own up to their own carbon footprint by disclosing more consistent, emissions-related data — and how these companies expect the value of fossil fuel reserves to steer the future of their brands. And investors will be able to make better, more informed decisions given the risks of investing in companies that do very little to curb carbon-heavy emissions.