How companies should prepare for the SEC's climate disclosure rules

05/17/22 • 32 min

While the comment period for the Securities and Exchange Commission’s proposed rule on climate-related disclosure has been extended into June, the proposal offers a solid hint as to how the final rulemaking might take shape. Jamie Gamble, Managing Director at PwC, and Maggie Peloso, Partner at Vinson & Elkins, join the show to dig into the details of the proposed rule and offer tips on what companies should be doing now ... yes, right now ... to prepare for the final rulemaking.
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Key Talking Points:

What are the basics of the proposed rule (1:35)

Breaking down Scope 1, Scope 2 and Scope 3 emissions (2:17)

The SEC departs a bit from “materiality” (3:02)

Key nuggets of the proposed rule (4:31)

Important things companies should be doing NOW to prepare (5:59)

The challenge of reporting physical climate risk (7:59)

Data, data and more data (9:50)

The proposal is about more than just greenhouse gas emissions (11:47)

A closer look at Scope 3 (13:08)

The role shareholders might play in shaping the future ‘materiality’ (19:39)

Will this rule cause companies to shy away from setting Scope 3 goals? (20:27)

Navigating a new form of ‘vendor risk’ (22:34)

Why planning ahead for this reporting matters (25:48)

Will this rule change the makeup of individual boards? (29:40)

More resources from Vinson & Elkins

Proposed SEC Climate Disclosures: What’s happening and what are the implications for companies?

The SEC’s Climate-Disclosures Proposed Rule – Eight Key Takeaways

More resources from PwC

SEC Climate Risk Disclosures: What it means for companies and what business leaders should do next

The SEC wants me to disclose what? The SEC’s climate disclosure proposal

Sign up for the Renewable Energy SmartBriefFollow the show on Twitter @RenewablesPod

What are the basics of the proposed rule (1:35)

Breaking down Scope 1, Scope 2 and Scope 3 emissions (2:17)

The SEC departs a bit from “materiality” (3:02)

Key nuggets of the proposed rule (4:31)

Important things companies should be doing NOW to prepare (5:59)

The challenge of reporting physical climate risk (7:59)

Data, data and more data (9:50)

The proposal is about more than just greenhouse gas emissions (11:47)

A closer look at Scope 3 (13:08)

The role shareholders might play in shaping the future ‘materiality’ (19:39)

Will this rule cause companies to shy away from setting Scope 3 goals? (20:27)

Navigating a new form of ‘vendor risk’ (22:34)

Why planning ahead for this reporting matters (25:48)

Will this rule change the makeup of individual boards? (29:40)

More resources from Vinson & Elkins

Proposed SEC Climate Disclosures: What’s happening and what are the implications for companies?

The SEC’s Climate-Disclosures Proposed Rule – Eight Key Takeaways

More resources from PwC

SEC Climate Risk Disclosures: What it means for companies and what business leaders should do next

The SEC wants me to disclose what? The SEC’s climate disclosure proposal

Sign up for the Renewable Energy SmartBriefFollow the show on Twitter @RenewablesPod

Previous Episode

Does Cryptocurrency Mining Actually Need To Be Cleaned Up?

John Belizaire, the founder and CEO of Soluna Computing, joins the show to do a deep dive on how cryptocurrency mining and blockchain platforms impact the grid. You’ve probably seen the headlines and the narrative is that the computing power required to run these technologies places a huge strain on the grid. Well, John recently testified before Congress on the topic of cleaning up crypto mining and the energy impact of blockchains ... and his opinion might surprise you. In fact, his viewpoint turns that narrative on its head.
John also discusses how sustainable computing is becoming yet another tool renewables developers and utilities can use to enhance grid resiliency and improve the financial performance of power generation projects. In short, John believes computing can become part of the grid ... rather than just something that demands power from the grid.

Highlights:
(2:02) - Why the narrative around cryptocurrency mining is wrong.
(6:22) - The debate around 'proof of work' versus 'proof of stake'
(10:47) - On testifying before the US Congress.
(16:00) - How renewables and cryptocurrency mining can help power each other.
(20:40) - How computing can become part of the grid.
(23:21) - The intersection of sustainable computing and battery storage.
(27:24) - John's bold predictions.
Sign up for the Renewable Energy SmartBriefFollow the show on Twitter @RenewablesPod

Sign up for the Renewable Energy SmartBriefFollow the show on Twitter @RenewablesPod

Next Episode

Tax Incentives and the Inflation Reduction Act

It's all happening! The U.S. Congress finally took action to try to stem the tide of climate change. The Inflation Reduction Act (IRA) includes $369 billion of climate and clean energy initiatives -- and tax incentives represent a huge chunk of that amount.
Lauren Collins, a partner at Vinson & Elkins, joins the show to explain how the plethora of tax incentives in the IRA stand to boost the deployment of renewable energy in the U.S. From Production Tax Credits and Investment Tax Credits to various Bonus Credits and the potential for investment funds and retail investors to start trading in new tax credit markets, Collins covers it all. She also highlights one key area of the energy puzzle that the IRA has unfortunately overlooked.
Key Highlights
3:44 - The most important tax aspects of the bill - PTC, ITC, Standalone Storage, Bonus credits
6:00 - The new technology neutral credit regime and leveling the playing field for smaller players
9:09 - Credit flexibility provisions (Direct pay and Transferability)
12:20 - Bonus credits and "Stacking" (Domestic Content, Energy Community and Low-Income)
17:10 - Prevailing wage provisions
19:26 - What about Hydrogen, Nuclear and Carbon Capture Utilization and Storage (CCUS)?
23:38 - Making room for Manufacturing, Minerals and Mining tax credits
26:15 - Which aspects of the IRA are overhyped?
28:21 - A new industry and marketplace for tax credits and tax professionals
29:30 - The 'missing piece' in the legislation
30:27 - Which aspects of the legislation are flying under the radar? Transmission misses out
33:30 - Bold predictions - Credit investment funds enter financial markets ... and so do retail investors!
More resources from Vinson & Elkins
Renewable Reboot: A Download on the Inflation Reduction Act of 2022 – Clean Energy Tax Provisions

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Renewable Energy SmartPod - How companies should prepare for the SEC's climate disclosure rules

Transcript

(Note: This transcript was prepared using artificial intelligence. It has not been edited verbatim.)
Sean McMahon 00:00

Hey what's up everyone and welcome to another episode of the renewable energy smart PA. I'm your host Sean McMahon, and today, we're gonna be taking a close look at the Securities and Exchange Commission's proposed rule on climate disclosure. The SEC recently extended the comment period for this rule. So I invited Jamie Gamble, a managing director at