Businesses need to prepare for climate reporting in 2024
As we approach 2024, businesses operating in the European Union and preparing for climate risk and sustainability reporting mandates, similar requirements will soon follow in the U.S. With increasing pressure from investors and consumers, companies are urged to provide more comprehensive information about their environmental impacts. This includes complying with new regulations concerning scope 1, 2, and 3 carbon emissions reporting, as outlined in climate rules in the EU and California. The EU Corporate Sustainability Reporting Directive (CSRD) mandates reporting on environmental, social, and governance efforts starting in 2024. In California, companies will need to comply with two climate bills starting in 2026, requiring reporting of carbon emissions and climate-related financial risks. The U.S. Securities and Exchange Commission (SEC) is also finalizing its climate risk disclosure rule, which could further impact reporting requirements for publicly traded companies. As these regulations loom, it’s essential for businesses to start preparing now to meet these obligations effectively.
