Laying the Pathway to a Healthier Climate

0
35

Humans aren’t wrong to take pride in their versatility, but at the same time, they do suffer from some glaring shortcomings. For instance, even though we have been able to progress rather significantly across different areas, our field of vision remains somewhat limited. Now, while this limitation hasn’t appeared as harmful under every single situation, it does expose a major vulnerability on our part. Hence, to minimize the impact that might emerge from such an outlet, the world has bought dedicated regulatory bodies into the world. By doing so, we have certainly managed to establish a sense of vigilance throughout the spectrum. However, it’s not to say that there were no challenges along the way. In fact, once technology took over the entire landscape, something like regulation really turned into an impossible task, as suddenly, the rule breakers had the best hideout they could have ever imagined. With all the misdoings effectively concealed from their view, the regulators were unofficially in a reality where their authority was diminished by a whopping margin. Fortunately, though, after a courageous fight back, the horizons no longer look so lopsided. If you dig through some recent regulatory moves, the claim only takes up a stronger impression, and in case it is still not enough, one more move could be joining the pack soon.

The US Securities and Exchange Commission has officially proposed a new set of rules that will make it mandatory for companies to update their investors on how much pollution they are pumping out. Structured around an annual format, the report is supposed to provide an in-depth analysis to the investors about how the company’s pollution might affect their earnings. Interestingly enough, the proposal arrives at a time when various companies, including Apple and Amazon, are pledging to become carbon neutral in the coming decades. Assuming it is approved, the proposal will ensure that these promises are genuine. It will achieve the said goal by pulling information, which constitutes greenhouse emissions produced during company’s operations, as well through electricity use. Beyond the said requirement, SEC has also asked companies to disclose indirect pollution coming from their supply chain. Nevertheless, small-scale business won’t be mandated to share the latter detail, whereas big companies only need to disclose indirect emissions that are essential for investors to understand the financial picture.

“We are concerned that the existing disclosures of climate-related risks do not provide investors with the detailed and reliable climate-related information they need to make informed investments and voting decisions,” said Renee Jones, director of the SEC’s Division of Corporation Finance.

At present, SEC proposal is yet to go through the public comment period, so it will be some time before we see anything going into effect, but considering the commission is itself divided over the new rules, the journey ahead is surely going to be a tricky one.

LEAVE A REPLY

Please enter your comment!
Please enter your name here