Many of us have of course, thought this for years.
Whilst detailed CR reporting won’t be ‘mandatory’ any time soon, climate change related reporting looks like it will be.
Right now we just don’t know how detailed it will need to be. Wording of guidelines is all-important.
CR reporting is of course, encouraged strongly in some countries (UK, Taiwan, Denmark, Sweden, France), and some kind of disclosure about it is becoming mandatory in places (listed companies in Denmark).
But regulated climate liability disclosure, where measurements are less subjective (although not without dispute) is definitely heading the way of large companies.
Two days ago Bloomberg reported thus: “SEC Sets Corporate Climate-Change Disclosure Standard“, saying that:
“Guidelines approved today require companies to weigh the impact of climate-change laws and regulations when assessing what information to include in corporate filings, the commission said.”
The medium-term question is: Will this be pushed on a ‘comply or explain’ basis over time, or simply demanded by law?
Bloomberg’s report also notes that: “In the 3-to-2 vote, the commission said companies in the U.S. should also consider international accords, indirect effects such as lower demand for goods that produce greenhouse gases, and physical impacts such as the potential for increased insurance claims in coastal regions as a result of rising sea levels.”