Mercado | Article | The top 5 things every importer must know about the SEC’s new ruling

The top 5 things every importer must know about the SEC’s new ruling

Article

The top 5 things every importer must know about the SEC’s new ruling

Published: January 3, 2023
The new SEC climate risk ruling is due to come into force this year. Here are the top 5 things that you need to know as you prepare your imports ahead of the coming year.
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Not sure what the SEC climate risk ruling is? Check out this article here.

Want to see how Mercado can help? Read more here.
  1. The U.S. Securities and Exchange Commission (SEC) are proposing new rule changes that would make it mandatory for companies to describe (on form 10-K) their strategy towards climate risk, including plans to achieve any targets they’ve set for curbing such risk.
  2. Currently, the SEC doesn’t require companies to report on climate risk or describe how they must do so. Instead, it provides “interpretive guidance” that suggests how companies disclose the impact from climate change in light of existing or new legislation, regulation and global agreements.
  3. It’s important to note that new ruling will not require all publicly traded companies to disclose the carbon emissions from their vendors, suppliers and other third parties across their supply chains. However, the mandate will apply to any businesses that has (or will) set goals for curbing “scope 3” emissions.
  4. Any company that has already publicly committed to curbing “scope 3” emissions (and in doing so, benefited from a “greener image”) will be expected to disclose more details on their strategy towards climate risk.
  5. The climate risk disclosure ruling will require three categories of disclosure: material climate impacts, greenhouse-gas emissions, and any targets or transition plans.

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.

Build an SEC-ready business

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