|
| | | | |  | | By Jordan Wolman | | | | | 
Courtesy of Workiva and PwC | Companies are planning to comply with the SEC's climate disclosure rule when it comes out, but they're worried about it. Eighty-five percent of executives in a recent survey said they worry that they don’t have “the right technology in place” to comply with the climate disclosure rule the Securities and Exchange Commission is expected to release this spring – with half feeling “very concerned.” That matters, given that nearly 97 percent anticipate technology playing an important role in their company meeting the new requirements. The findings come from a joint survey released last weekby Workiva and PwC of 300 executives at U.S. public companies with at least $500 million in annual revenue. Since the SEC first proposed its climate disclosure rule last March, the agency has been inundated with public comments. Once finalized, the rule is widely expected to face legal challenges. The business leaders detail other concerns in the survey outside of technology. More than a third say they are not confident they have adequate staffing to meet the demands of the new disclosures (ironically, the largest companies surveyed were slightly more likely to believe they lacked appropriate staffing). And 61 percent said they expect the rule will essentially hit their company with a cost of more than $750,000 during the first year of compliance, higher than SEC estimates – while some 27 percent expect compliance will cost at least $1 million.
| 
Courtesy of Workiva and PwC | Overall, almost 40 percent said their company is not fully prepared to meet the requirements. Nevertheless, a larger “corporate embrace” of environmental, social and governance reporting is likely to propel general compliance with the disclosure requirements. Almost 9 in 10 executives, for instance, said they already report some ESG data. Seventy percent said they would comply regardless of when the final rule is released, and 96 percent said they would pursue independent assurance whether or not it’s required in the final rule. The forthcoming rule is also pushing companies, too. The survey found that 95 percent of business leaders are prioritizing ESG reporting more since the proposed rule came out last year. All 300 of the executives said their companies have taken action in anticipation of a final rule, with 40 percent investing in reporting technology and 35 percent accelerating climate goals. “While U.S. companies have come a long way in reporting ESG data, we have reached a tipping point where companies should address important technology and resourcing challenges to become compliant with the pending rule and other stakeholder demands for ESG transparency,” the report found.
| | | | DOWNLOAD THE POLITICO MOBILE APP: Stay up to speed with the newly updated POLITICO mobile app, featuring timely political news, insights and analysis from the best journalists in the business. The sleek and navigable design offers a convenient way to access POLITICO's scoops and groundbreaking reporting. Don’t miss out on the app you can rely on for the news you need, reimagined. DOWNLOAD FOR iOS– DOWNLOAD FOR ANDROID. | | | | | | | | GAME ON — Welcome to the Long Game, where we tell you about the latest on efforts to shape our future. We deliver data-driven storytelling, compelling interviews with industry and political leaders, and news Tuesday through Friday to keep you in the loop on sustainability. Team Sustainability is editor Greg Mott, deputy editor Debra Kahn and reporters Jordan Wolman and Allison Prang. Reach us all at gmott@politico.com, dkahn@politico.com, jwolman@politico.com and aprang@politico.com. Want more? Don’t we all. Sign up for the Long Game. Four days a week and still free!
| | | — After reaping a massive windfall from coal last year, Glencore is planning to use some of the proceeds to boost its pursuit of raw materials needed for the green transition, Bloomberg reports. — Is the 1.5C target for limiting global warming still an achievable goal? The Financial Times takes a look at what it calls a crumbling consensus. — The Washington Post examines California’s efforts to use the winter’s deluge of rain and snow to replenish drought-starved groundwater supplies.
| | | | LISTEN TO POLITICO'S ENERGY PODCAST: Check out our daily five-minute brief on the latest energy and environmental politics and policy news. Don't miss out on the must-know stories, candid insights, and analysis from POLITICO's energy team. Listen today. | | | | | | | | | Follow us on Twitter | | | | Follow us | | | | |  |
