Joe Schloesser, Vice President at ISN, shares his insights with insideBIGDATA for their 6/20/2023 edition of Heard on the Street.

“According to new data, most public companies have already implemented some ESG reporting and plan to voluntarily disclose ESG data, but are not fully prepared to meet the new SEC climate disclosure requirements. While the rules were anticipated to be final in April, it is now expected that the SEC will release the final climate disclosure rules this fall.

Data will be a critical element in complying with the SEC climate disclosure rules once passed. To prepare, businesses must ensure they have the proper controls in place to collect primary data on their emissions. For example, businesses should analyze their current carbon footprints, along with their suppliers’, to identify which stages in the supply chain their emissions are being produced. Organizations should then leverage current data to set guidance toward GHG reduction targets by creating interim goals. In addition, departments should be collaborating internally with procurement and finance departments, as well as leverage existing financial controls. As the rules become final, specific emissions factors will need to be translated into a reportable data point to comply with the public disclosure component of the regulation.”

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