SEC Says You May Need to Disclose Climate Risk. Are You Covered? | Acrisure Viewpoints
The U.S. Securities and Exchange Commission (SEC) is considering a proposal that would require companies to disclose specific areas of climate impact. Is your business prepared for the increased risk that this could pose to both your company and leadership team?
What You’d Need to Disclose
At present, the proposal issued by the SEC would require companies to disclose direct greenhouse gas emissions, indirect emissions through electricity and other energy purchases, and indirect emissions throughout their value chain, including everything from supply chain to end users.
Why You Need to Be Prepared
Experts say that required reporting would increase transparency for climate-related issues, but also open the door for climate change derivative lawsuits. ClimateEarth, for instance, has announced planned legal action against Shell’s directors over the company’s climate transition plan.
Chad Williamson, VP and Broker-Producer at Acrisure, urges companies to be prepared.
"Boards of Directors and management teams can't afford to turn a blind eye to environmental, social, and governance matters,” Chad said. “We’ve seen that New Zealand and the UK have already rolled out climate disclosure requirements, and Australia appears to be close behind. This is opening a new risk category that companies need to be preparing for now to protect themselves down the line.”
How We Can Help
When organizational and personal assets are at stake, liability insurance is critical to your risk management strategy. Directors and Officers, or D&O, insurance policies offer liability coverage for company leadership to protect them from claims and defense costs that may arise from decisions and actions taken within the scope of their regular duties.
What is D&O Insurance?
Being safeguarded against possible threats with D&O liability insurance covers senior leadership from professional and financial risks associated allegations of negligence, misrepresentation, defamation, non-disclosure, human rights legislation, environmental legislation, and occupational health legislation.
Acrisure’s Executive Risk Solutions (ERS) group has extensive experience navigating complex insurance products that protect a company’s bottom line, reputation, and executives from increasing legal and regulatory risks.
Our insurance professionals are well-versed in a variety of industries and specialize in partnering with clients to manage this ever-changing landscape. We’ll work with you to actively identify risk and establish creative solutions for mitigation.
Protect your corporate and personal assets from exposure. Make D&O a part of your risk management strategy today by emailing Chad Williamson at [email protected].
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