The SEC’s declaration of the proposed rule mandating public companies to adequately report SEC disclosure on impacts and likely risks of climate change on their operations has created pressure that sets companies in a race to acquire advanced technology that aids this.
This comes after the understanding that using spreadsheets to analyze, calculate and report climate data will no longer be sufficient and outdated. What follows this revelation is the need for companies to fully integrate information technology and harness them to obtain software designed to manage sustainability pursuits.
With this, carbon management software has now acquired significant relevance and caused several providers to rise to the limelight to meet these demands. This piece highlights how to create a world-class carbon management system for SEC disclosure. Keep reading.
Five Essential SEC Disclosure Functionalities of An Excellent Carbon Management System.
Based on the recent SEC disclosure requirements and the recognition of the inadequacy of regular systems and spreadsheets, there is a quest for digital management systems that would capture current and future concerns as it relates to climate policy changes and attaining a net-zero emission strategy. Some of the features and functionalities of carbon management software include the following:
Climate risk analysis and management of disclosures:
For effectiveness, carbon management systems must be equipped to analyze in complete detail the risk of climate change and give full disclosure about them. It is recommended that the software features aspects such as TCFD reporting, climate risk portfolio modeling, physical and digital assets climate risk assessment, and disclosure workflows. This would help firms and industries be at the top of their game in fulfilling the SEC standard disclosure requirements
Financial overseeing and carbon pricing
Adequate pricing of carbon emissions is highly instrumental to excellent carbon management by organizations. As time proceeds, there is an expectation for companies to internalize the cost of their CO2 emission as payment would be required for every CO2 emitted. This would, in turn, lead to a significant contribution of carbon costs to financial-related decisions. An adequate carbon management software should cater to price modeling, internal CO2 emission fee-charging carbon credits ledgers, and trading desks.
For more information please visit the following link: https://www.esgenterprise.com/esg-reporting/sec-disclosure-carbon-management-system/
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