Mercado | Article | How Mercado can help importers prepare for the new SEC ruling

How Mercado can help importers prepare for the new SEC ruling


How Mercado can help importers prepare for the new SEC ruling

Published: December 28, 2022
Back in November last year, we published an article on The SEC climate risk rule: What it means for the import supply chain. Since then, we’ve had a wave of requests asking how Mercado can help.
Firstly, we should note that the U.S Securities and Exchange Commision (SEC) doesn’t strictly require companies to report on climate risk, nor does it describe how they must do so. Instead, the Commission provides “interpretive guidance” that suggests how companies disclose the impact from climate change in light of existing or new legislation, regulation, and global agreements.

However, this could all be subject to a big change.

Last year, it was reported that the SEC would be proposing new rule changes, making it mandatory for companies to outline their strategy towards climate risk on their 10-K, and include detailed plans on how they plan on achieving any targets they set for curbing such risk.

The rules will not require all publicly traded companies to disclose the carbon emissions from their vendors, suppliers, and other third parties across their supply chains, but will limit the mandate to businesses that have already set goals for curbing such “scope 3” emissions, according to the SEC Chair, Gary Gensler.

“If a company decides, ‘I have made no commitment to the future on that and it’s not material to my investors and my operations under the Supreme Court test of materiality,’ you don’t have a disclosure obligation on scope 3.”

However, for the majority of businesses looking to implement targets around their emissions and ESG impacts, the new SEC ruling will no doubt need to feature within their planning in early 2023.

How can Mercado help?

As with previous government mandates, this isn’t something importers can simply turn a blind eye to. Thankfully, the Mercado product suite offers solutions to help give you the headstart you need.

Last year, Mercado announced the launch of Mercado Plan — a compliance module purposefully designed to support the creation, standardization, and development of compliance standards for internal business teams and their partners and vendors.

Mercado Plan gives importers the tools they need to verify, educate, and inform suppliers about internally mandated guidelines — including new regulations, such as the UFLPA and those being brought in by the SEC.

The platform comes with preloaded templates and content to give businesses a starting point to address key environmental, social, and governance topics. And with completely customizable features and creator tools, importers can develop their own custom content aligned to new regulations as needs arise.

By implementing Mercado Plan, importers can significantly reduce supplier-related pain and equip their teams with the confidence they need to know partners and vendors are aligned with their social, regulatory, and supply chain standards.

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Discover how you can prepare for the new SEC ruling here.
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