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Image: 4 ways to navigate the SEC’s Climate Disclosure Rule

The Securities and Exchange Commission (SEC) has unveiled its Climate Disclosure Rule, a significant move toward promoting transparency and accountability in the face of climate change. This groundbreaking regulation aims to give investors a clearer picture of the risks and opportunities posed by climate change for publicly traded companies. Understanding and complying with these new requirements will be a considerable challenge for many organizations, but we’re here to help you navigate it.

In an era where climate change shapes our environment and investor decisions, the SEC’s Climate Disclosure Rule arrives in time to encourage transparency and accountability for publicly traded companies. This seismic shift underscores companies’ urgency to report and manage their environmental impact.

Understanding the SEC Climate Disclosure Rule

Applicability and objective:

The rule targets public companies and demands more comprehensive disclosures about climate change’s financial and operational impacts. Its goal is to enhance investor insight into climate-related risks and opportunities and facilitate more informed decision-making.

Key requirements include:

  • Climate-related risks: The need for companies to evaluate and disclose climate-related risks that might materially affect their business
  • GHG emissions reporting: This is a requirement for disclosing greenhouse gas (GHG) emissions, focusing on direct emissions (Scope 1) and indirect emissions from purchased electricity (Scope 2)
  • Financial impacts and risk management: Companies must outline how climate change impacts their financial health and describe their risk management strategies

Challenges ahead:

Companies are at a crossroads, facing the dual challenges of reporting detailed GHG emissions and navigating complex legal landscapes. A leading Financial Services Organization’s journey, leveraging cutting-edge technology to streamline its sustainability reporting, exemplifies the pressing need for accurate and comprehensive environmental data management:

[A] significant development is the inevitable adoption of sustainability into ITAM, most notably driven by Flexera’s work to add carbon footprint data into the Technopedia database. The ability to take a carbon footprint view side-by-side with lifecycle and inventory data is a game changer, propelling ITAM to the forefront of value and data-driven decision making.

SVP, IT
Financial Services Organization

How to empower compliance and sustainability

Flexera is at the forefront of this transformation. We offer unparalleled insights and management capabilities with Technopedia. This ensures companies comply and excel in their sustainability and ESG endeavors.

In the wake of the SEC’s Climate Disclosure Rule, companies are now tasked with unveiling how climate change impacts their operations, finances and overall risk management. This heightened transparency is not just a regulatory requirement; it’s a critical component of maintaining investor trust and securing a company’s future in an increasingly environmentally conscious market. Flexera, renowned for its IT Visibility and IT Asset Management (ITAM) solutions and bolstered by its acquisition of Snow Software, is exceptionally positioned to guide companies through these challenging waters.

 

1. Leverage Technology Intelligence for compliance and sustainability

Complying with the SEC’s new mandates requires detailed information on the lifecycle of IT assets. This is where Technology Intelligence—comprehensive visibility and actionable insights—can be leveraged to deliver on the SEC’s requirements. Flexera’s Technology Intelligence is driven by Technopedia, the largest and most complete technology asset information source, to empower businesses to seamlessly navigate challenges from end-of-life (EOL) and end-of-service (EOS). By enriching and normalizing configuration items with lifecycle data, companies can proactively plan updates and upgrades, minimizing vulnerability risks and the environmental impact of outdated technology.

2. Strengthen security and compliance positions with reliable security data

Flexera’s dedication to security and compliance is evident through its Secunia Research team, which delivers unmatched vulnerability intelligence. This intelligence aids in identifying and prioritizing vulnerabilities and enhances a company’s ability to disclose and manage climate-related IT risks effectively. By integrating vulnerability research with patch management, Flexera ensures that IT environments remain secure, supporting a company’s sustainability goals and compliance with the SEC’s climate disclosure requirements.

3. Optimize IT assets for financial and environmental impact

Beyond compliance, Flexera’s solutions offer substantial financial benefits, helping companies save millions on software licenses and avoid costly true-up expenses. Flexera One ITAM extends these capabilities, enabling businesses to discover missing hardware and accurately calculate complex software license positions across diverse environments, including on-premises, hybrid, and cloud instances. This comprehensive visibility and control over IT assets ensure compliance with the SEC’s rules and promotes environmental sustainability by optimizing resource usage and reducing unnecessary energy consumption.

4. Address hybrid estate challenges

Managing a hybrid estate presents unique challenges in today’s evolving IT landscape. Flexera’s solutions are adept at navigating these complexities, offering insights and management capabilities for containers, VMs, SaaS, and cloud instances. By ensuring efficient utilization of IT resources, Flexera assists companies in minimizing their carbon footprint, a key component of Scope 2 emissions reporting under the SEC’s rule.

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IT Visibility

The business promise of your IT is huge. But it takes a complete, up-to-date view of your hybrid environment to make the most of it.

Build a sustainable strategic partnership with Flexera

Join the vanguard of companies transforming their sustainability reporting with Flexera. Discover how our solutions can tailor your path to compliance and environmental stewardship.

The SEC’s Climate Disclosure Rule represents a pivotal shift towards integrating climate considerations into corporate governance and strategy. Flexera, with its unparalleled expertise in IT asset management and security, stands ready to assist companies in meeting these new requirements and leveraging them to enhance their sustainability efforts and financial performance. By harnessing Flexera’s comprehensive solutions, businesses can confidently navigate the complexities of climate disclosure, ensuring transparency, compliance and environmental stewardship.


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