What the SEC's new climate transparency rules mean for you


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Discussing sensitive topics can be challenging for business owners. This is one of the top three or four reasons I get initial calls for public relations assistance handling a hot issue. The latest confusing trend is ENDURANCE and how to talk openly about it. Surprisingly, people need clarification on how much to talk about it, why it's important, and when to bring it up. There is also a new word for this fear: “greenery.”

The latest pressure on companies related to eco-messaging is the US Securities and Exchange Commission (SEC). recent efforts to enforce the regulations that protect investors and maintain market integrity. Essentially, the SEC has revised environmental transparency rules and introduced mandatory climate risk disclosures for public companies.

This is the first time a sustainability mandate has emerged at the national level and is expected to have a significant impact. In my opinion, even for private companies, it is a call to pay attention and not neglect this discussion.

We are entering an era where climate targets, targets and governance frameworks will become mandatory in corporate reporting. This shift also aligns with growing consumer demand for environmentally and ethically sustainable products – a trend that, despite its popularity, has seen many companies struggle to translate into tangible demand.

Connected: Sustainability for entrepreneurs – Why it matters (and how to achieve it).

The paradox of consumer demand and greenwashing

customers RALLY for sustainable products often stands in stark contrast to their actual purchasing behavior. While surveys show a strong desire for sustainability, sales often have to catch up to expectations for new, environmentally conscious products. This discrepancy is exacerbated by greenwashing – where claims of environmental stewardship are not backed up by practice – further eroding consumer confidence and complicating the landscape for genuine initiatives.

I would advise any company today to prepare for discussions and engagement on sustainability. Now it's an unavoidable topic. Because I've been a part-time CMO and external public relations consultant since 2002, I've received many calls from companies facing these crucial moments. Here's the advice I'd give to a leadership team aiming to be more vocal about sustainability.

The imperative of transparency

In this context, the necessity for tRANSPARENCY it is undeniable. Beyond simple regulatory compliance, transparency is essential to cultivating consumer trust and loyalty. Companies must now proactively measure and refine their approaches to climate change, so this journey must begin with a comprehensive understanding of your environmental footprint, including greenhouse gas emissions, resource use and waste generation.

Usually facilitated by external consultants or an internal sustainability team, this baseline assessment is critical to setting realistic sustainability objectives and improvement strategies. Using standardized tools and frameworks like Greenhouse Gas Protocol AND Life Cycle Assessment provides a methodical approach to this task and will result in data and benchmarks that you can consistently use in your messaging efforts.

Armed with this data, specific, time-bound goals can be set that meet compliance requirements (if necessary) and drive significant environmental and social improvements. Engaging stakeholders, especially employees, at this stage helps surface any practical concerns and integrate this knowledge into the goal-setting process.

Connected: 70% of consumers say they will buy “green” products, but only 5% actually do. This is due to a common marketing mistake by eco-friendly brands.

The role of public relations in implementation

Public relations in the field of sustainable messaging goes beyond issuing press releases. PR is a strategic tool for reinforcing and incorporating climate change initiatives into corporate ethos. compelling story telling highlighting a company's sustainability progress and impacts can significantly enhance its reputation and foster third-party credibility.

Using a variety of channels—from press releases and social media to comprehensive sustainability reports—enables these stories to reach and resonate with a wide audience, igniting engagement and advancing the sustainability agenda.

The cultivation of culture centered on sustainability inside is essential. Companies can ensure that sustainability principles are deeply rooted in every aspect of their operations through regular education programs, active participation in sustainability initiatives and recognition of individual and team contributions. This not only reinforces the company's commitment to sustainability among employees, but also mobilizes them and other stakeholders as ambassadors of these values.

Continuous monitoring and evaluation of sustainability initiatives and how they are perceived by the public are vital measuring points to consider when assessing progress. Like any meaningful initiative, deployment and tracking Key performance indicators (KPIs) allow companies to measure effectiveness and identify areas for improvement. Further, engaging with employees and stakeholders through feedback will enrich this process and provide real-world insights.

It seems counterintuitive, but in my experience, challenge is often partnered with opportunity. Tackling difficult topics can reveal opportunities for innovation, stakeholder engagement, and corporate accountability that would otherwise have been dormant. Speaking specifically about sustainability isn't always about compatibility. It's a chance to attract buyers and lead the market with integrity, innovation and vision.



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