The Coming U.S. Regulatory Oversight on Climate Disclosure,

Regulation and oversight of climate disclosure and related carbon measurement is coming to the U.S. On April 9, 2021, the United States Securities and Exchange Commission (SEC) issued a risk alert cautioning firms that their Environmental, Social, and Governance (ESG) statements will be more heavily scrutinized. This article first provides brief background on the heavy regulatory push and industry demand for carbon neutrality disclosure in the United States. Following the background, author insights revolve around three key areas: First, what globally accepted carbon neutral measurement, reporting, and strategic framework does your firm use? Second, are the carbon offsets you purchase in compliance with United Nations (UN) standards, from an accredited source, and/or SEC-verifiable? Third, what third-party auditing of your Global Greenhouse Gas (GHG) measurement is in place and are they by a certified auditor, such as an ISO 14000 Family (Environmental Management) auditor?6