If you closely follow the corporate news, you can agree that the ESG Industry for June 2022 has seen the most changes, updates, and unpredictable turn of events: the good, the bad, and the ugly.
To drive sustainability in the corporate world, the ESG industry holds great significance as it contributes a great deal to several organizations sitting up and putting their homes in order regarding sustainability in their operations. It is also due to the recognition of the social and competitive advantage of having a high ESG rating. Let us take a look at what is hot and what is not in the industry right now.
What Is Hot?
The mandate of climate change disclosure on public companies
In what is being tagged as a historic move, the US Security and Exchange Commission SEC proposed new rules which mandate businesses and public companies to report greenhouse gas emissions and the impact on their businesses.
Before this, reporting on climate-related information was only done voluntarily, and only a few companies like Apple provided some information on climate-related matters. This new mandate according to the SEC chairman Gary Gensler is in response to demand from investors and companies to have additional information on climate change-related risks by public companies.
The nascent rule also requires data from companies about their greenhouse gas emissions and energy consumption which are known as Scope 1 and Scope 2 emissions, respectively.