Climate Action Data Trust’s Post

📣 The Securities and Exchange Commission has announced new regulations aimed at improving and standardizing the reporting of climate-related information by public companies. The new regulations address investors' desire for more cohesive and accurate data concerning the impact climate has on the operations and financials of a company. Public companies will be required to disclose… 🍃 Climate Related Risks that are likely to impact the business strategy, operations, materials or financial condition. This provision also mandates that companies disclose the steps they have taken to minimize or adapt to climate-related risks within their overall strategy. 🌍 Governance roles that have been put in place to assess and manage the climate risks, companies also must disclose any oversight by the board of directors regarding climate related risks. 🎯 Climate Related Targets and Goals need to be disclosed if they can it will impact the operations or financial condition of the company. Additionally, any processes that the company implements for identifying, assessing and managing climate related risks must also be reported. 🌧️ Severe Weather can impact the estimates and assumptions used to produce the financial statements, companies must report how the estimates and assumptions were impacted. Companies must also disclose any losses incurred as a direct result of severe weather events and natural condition 🏆 Carbon offsets or Renewable energy credits/certificates: If being used as a component of a company's strategy to achieve its climate-related objectives, the cost and expenses associated with those must be disclosed. 🔗To learn more about the SEC’s disclosure requirements for public companies, visit https://hubs.li/Q02pjHnh0. Per the SEC "The final rules will become effective 60 days following publication of the adopting release in the Federal Register, and compliance dates for the rules will be phased in for all registrants, with the compliance date dependent on the registrant’s filer status" Building digitization sets you up to have a source of truth for these climate-related activities for the built environment. Remember, buildings are only one piece of emissions. Need help navigating these new requirements? Visit https://hubs.li/Q02pjXJc0 to see how Backpack can help! #commercialrealestate #proptech #climateriskreporting #SECReporting

2024 has already seen significant strides in climate-related disclosure regulation worldwide - from Singapore’s announcement of ISSB-aligned mandatory climate reporting to the SEC climate disclosure rules for companies and investors in the US. 🌏 Such developments signal a landmark shift in how companies will be required to disclose their emissions and use of #CarbonCredits, incentivising even greater strides in #ClimateAction. At Carbonplace, we’re pleased to see the implementation of ISSB regulation and welcome efforts for greater transparency in the #CarbonMarkets to unlock market growth and improve credit quality. As the market evolves amidst incoming regulations, Carbonplace well-positions users with essential tools including portfolio management, transparent pricing and real-time insights to facilitate comprehensive reporting. Learn more about how Carbonplace can empower your #Sustainability journey here: https://lnkd.in/e9cTt-5h

Verra is advancing the development of version 5 of the Verified Carbon Standard Program and has published its responses to comments received during a high-level consultation on the program’s rules and requirements that ran from February 6 to April 7, 2023. Overall, the consultation feedback centered around three key themes: 1) Increasing ambition for program integrity 2) Ensuring the VCS Program’s scope is fit for purpose to maximize impact 3) Improving the VCS Program’s transparency and usability Read more: https://bit.ly/3IbOFIy #Verra #CarbonMarkets #CarbonCredits #ClimateChange

“We must seize every opportunity to reduce emissions today. Clear direction from governments gives companies confidence to act." 🎤 Mark Kenber, Executive Director of VCMI, spoke on-stage alongside The Integrity Council for the Voluntary Carbon Market (ICVCM)'s Annette Nazareth and others to welcome the launch of the US Government's Voluntary Carbon Markets Joint Policy Statement and Principles. “This is exactly what the United States is providing. The Principles are fully compatible with VCMI’s Claims Code, which gives companies a standard they can use now to engage in voluntary #carbonmarkets and make verified claims.” 📣 Last week's announcement builds confidence and will help the #VCM realize its full potential. It sets a precedent for countries: ministers from countries around the globe – such as Kenya, the UK, Ghana, Japan, and Finland, among others – have already voiced their support for VCMI's Claims Code Practice. VCMI will continue to work with policymakers, both in the US and globally, to drive integrity in voluntary carbon markets, delivering benefits for people and the planet.  🔗 Learn more: https://lnkd.in/e2w2U4-y #ClimateAction #ClimatePolicy #NetZero U.S. Department of the Treasury

Scope 3 #emissions are an essential part of understanding an individual company’s impact on #climatechange. Whether its products and services will help to deliver a #netzero economy. Read good insights about investor perspectives on both the importance and the complexity of the #valuechain emissions. #scope3emissions #decarbonization

Navigating the challenges of #Scope3 emission reporting isn't just an industry secret—it's a widely acknowledged frontier! From the daunting task of calculating emissions to ensuring #consistency and comparability across #companies within a sector, the journey is fraught with hurdles. Imagine grappling with customized #emissionfactors, ambiguous #boundaries, and fluctuating #activity data-it's a true puzzle! Recently, the Greenhouse Gas Protocol (GHG Protocol) shared findings from a survey aimed at improving their guidance, highlighting the ongoing effort to simplify this vital information https://lnkd.in/dQhaxxBQ. While we anticipate these improvements will ease the complexity in the future, the urgency to integrate emissions data into investment decisions demands immediate action. The solution remains clear: we must move beyond relying solely on #reported data! This is where Inrate’s climate data solution steps in, offering a structured approach to fill gaps in #Scope3 quantification and reporting. By providing clarity and consistency, it equips financial markets with the insights needed to make impactful #investment choices. In a rapidly changing world, waiting for perfect data isn't an option. Inrate's modeled data aims to bridge the gaps left by the complexities of #Scope3 #quantification and #reporting. It brings clarity and #comparability to the forefront, providing #financial markets with a robust foundation for making well-informed decisions. It's time to look beyond the surface of #reporteddata and uncover the insights that drive impactful decisions. #climate #scope3 #emissions #environment #sustainablefinance #decarbonisation #emissions #climaterisk #climatefinance #esg #data #netzero #sustainability #ghgemissions #climatechange

TLDR: Carbon Markets are "a critical bridge to long-term climate solutions", but need to be aggressively streamlined, integrated and financialised for this to occur. A neat little summary in the The Wall Street Journal on the need for carbon markets and how to best improve them. From our experience, there are a few additional ways to enhance and grow them even further: - Improve investor accessibility: carbon markets are full names and terms that aren't found in other major asset-classes: compliance vs voluntary, removals and avoidance, methodology, registries, nature-based or technology-based and many more. Two distinctions actually matter: 1) government created vs project-backed (how does the offset/credit contribute to decarbonisation), and 2) integrity and quality (i.e. does the offset/ credit actually contribute to decarbonisation) - Integrity and quality, not vintage: vintage of credits has become a common-place, albeit rough proxy for project quality and integrity. The new Core Carbon Principles from the The Integrity Council for the Voluntary Carbon Market (ICVCM) and the upcoming assessment results of various projects are crucial steps-forward in the market. Aside from being potentially inaccurate, vintage fragments the market needlessly further. - Clarify the accounting treatment: the reduced liquidity of project-backed carbon markets (aka the voluntary carbon market) has made it harder for auditors and tax professionals to decide between appropriate treatment of carbon credits, such as whether to hold their value at cost, or at fair-value, or whether to even treat them as financial assets or as intangibles. For us, this represents a chicken-or-egg problem where the financialisation required to grow carbon markets is only possible through treating them as a more a traditional financial asset. Removing vintage and improving access to pricing would also go a long way in supporting this. #carbonmarkets #voluntarycarbonmarket

Passionate about advancing carbon integrity and climate action? Explore how Verra and ART are meeting high standards in carbon crediting, endorsed by the Integrity Council. From rigorous compliance with Verified Carbon Standard (VCS) to nature-focused solutions with Architecture for REDD+ Transactions (ART), discover the latest in 🌍 #CarbonIntegrity and 🔍 #ClimateAction. Methodology assessments pave the way for high-quality credits, incorporating expert evaluations and green innovations. Learn about finance for nature-based solutions, global impacts, and ensuring market integrity through regulatory models and continuous improvement programs. Join us in shaping the future of carbon markets! #InfiniteSolutions #Verra #ART #CarbonCredits #CarbonMarket #NatureFinance #MarketIntegrity

The foundation of the Voluntary Carbon Market (VCM), and any carbon removal marketplace, must be trust — trust that each carbon credit represents a genuine removal of CO2 from the atmosphere. Nori secures this trust by maintaining control and accountability over the quality and clarity of our methodologies. This control allows us to prioritize three critical pillars: • Rigor • Transparency • Accessibility Learn more about why Nori creates its own methodologies in our recent blog post from CEO Matt Trudeau and Director of Methodology Rick Berg: https://hubs.ly/Q02wRgWL0