Environmental, Social, and Governance (ESG) factors are metrics investors use to assess and compare the sustainability practices and ethical impacts of investments/businesses.
Why SEC Regulations Matter? Under new Securities and Exchange Commission (SEC) proposed rules, nearly all SEC registrants would be required to include certain information about their Environmental, Social, and Governance (ESG) and Climate Related risks in their annual disclosures. The majority of businesses would be required to identify the business risks caused by climate change that affect their businesses. These companies are required to disclose their risk identification and management approach as well as their quantified risks in a consistent, comparable, and verifiable approach. Additionally, these companies would need to quantity and disclose their business and operation impact on climate change by disclosing their greenhouse gas (GHG) emissions in a similarly consistent, comparable, and verifiable approach. Additional reporting requirements would be applied to a subset of companies that declare that ESG factors play a significant role in their investment decisions. There requirements are set to increase the transparency and consistency regarding such declarations.
Where Can We Help?
Gradient scientists are equipped with technical expertise to contribute in ESG and climate risk management, evaluation, and reporting. Our services in these area include:
Strategy and Risk Management
Quantitative Impact and Risk Evaluation
Report development or review in accordance to applicable reporting standards and frameworks (e.g. TCFG, GRI, and GHG Protocol)
Evaluation of Environmental Liabilities
Gradient developed a streamlined process and site ranking methodology to evaluate a utility company’s multi-site manufactured gas plant portfolio. The process leveraged the review of readily available to tier sites as higher, moderate, and lower priority and to gauge potential response cost magnitude and certainty. Site tiers were based on assessment factors including historical operations, physical setting/land use, third party issues, and potential impacts to brand/relationship.
Framework to Evaluate Sustainability of Remediation Alternatives
Gradient developed a comprehensive framework that enables coal-fired utilities to evaluate the potential human health and environmental impacts associated with closure options for surface impoundments containing coal combustion residual. Gradient evaluated GHG emissions, relative impacts to air and water resources, environmental justice, and community impacts.