In this new era of mandatory climate reporting, companies operating in multiple jurisdictions must comply with a complex array of new disclosure laws. Companies operating in the European Union and California, as well as public filers in the U.S., should map the applicability of these new laws to their operations and create a strategy to collect and report information including on greenhouse gas ("GHG") emissions, climate risk, actions taken to address climate risk, and information on climate-related goals and the use of carbon offsets.
Covington is assisting companies in compliance with the CSRD, SEC, and California climate disclosure laws, as well as strategies for compliance across multiple jurisdictions that seek to provide harmonization, standardization, and sound efficiencies. Companies should understand the applicability of each of these laws, relevant implementation timelines, how to assess materiality - including the CSRD's "double materiality" standard -, and how to create strategies for collecting and disclosing accurate climate-related information, including audit-ready information.
While some uncertainty with respect to implementation remains, the new era of mandatory climate reporting is here and companies are well advised to prepare.
Covington is the Event Partner for US Climate Action Summit 2024.
