The US Securities Exchange Commission (SEC) released interpretive guidance on existing disclosure requirements as they relate to business or legislative events on the issue of climate change. The SEC made clear that the new guidance documents do not require companies to change their current disclosure practices in any way, but instead offered advice on how to account for emerging climate change risks, whether due to new legislation, changing probabilities of extreme whether events, or changes in the competitive landscape.

The US SEC’s guidance came at the behest of investor groups like Ceres, a national network of investors, environmental groups, and other public interest groups. Ceres has also submitted requests to the Ontario Securities Commission (OSC) for similar guidance. In October, Ceres asked the OSC to work with the Canadian Securities Administrators (CSA) to improve disclosure on a national level of material climate risks and related corporate governance actions. As such, additional guidance from a Canadian perspective might be pending.

Understanding the suite of risks and opportunities related to climate change is increasingly integral to running a business that is fully compliant and prepared. Delphi offers services in GHG inventories and reporting, regulatory policy analysis, and sustainability strategy development and implementation to help its clients capitalize on the opportunities and avoid the risks related to climate change. With movement from the US SEC and signs that the OSC and CSA are looking at better defining climate risks and disclosure in Canada, getting an understanding your businesses emissions and exposure could help you prepare for intelligently managing this issue. 

By Jeff Beyer, .(JavaScript must be enabled to view this email address)