
Posted By: Greg Elliott
Here is an article I ran across on nplusoneit.com written by John Stanley. This particular post focuses on the SEC’s ruling on climate change.
The SEC ruling and your data center, Part 1
Posted by John Stanley
This is Part 1 of a multi-part post on the SEC’s recent ruling on climate change. This post provides a brief summary of the ruling itself. One or more subsequent posts will drill down into the possible effects on data centers.
SEC: Climate change is material to your business
In late January, the Securities and Exchange Commission (SEC) ruled that public companies must disclose to investors the risks they face related to climate change. The SEC ruling does not create new rules or modify existing ones–it merely provides interpretive guidance regarding the risk disclosure rules already on the books.
The ruling describes four particular areas where climate change risks (and opportunities) may trigger disclosure requirements:
Impact of legislation and regulation – Risks may include costs to purchase allowances under a “cap and trade” scheme, cost to retrofit facilities in compliance with new standards, or reduced demand for carbon-intensive goods/services sold by the company. Interestingly, the SEC states explicitly that “a registrant should not limit its evaluation of disclosure of a proposed law only to negative consequences” (p.23). For example, there may be opportunities to profit from selling allowances, or from an increase in the demand for a company’s (low carbon) products.
International accords – Similar to the impact of domestic legislation, international accords may affect business.
(Read more)
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