Page 10 - Georgia Forestry - Issue 3 - Summer 2022

The Costs and
Benefits of Reporting
If the rule is adopted, many companies may have to add to their current report- ing efforts. While many collect much of this data already, voluntary disclosures like ESG reports do not have require- ments that are as strict, and do not always require outside auditing. There can be a “high level of variance” in which data companies choose to publish in these reports, Kardos said.
“A very large percentage of compa- nies put out some kind of voluntary ESG report. But by the nature of being required [by the SEC], it would require companies to do it at a level of detail that many are not doing right now,” Kardos said. “Once it’s an SEC requirement, it’s more specific and it’s required by law, as opposed to a voluntary thing in which you could pick and choose one detail over another. The level of backup and assurance you need for that kind of information is much higher than that in the current ESG.”
Despite potential costs, the reporting
“There are cost reductions to be found in this data and tracking it over time. It can tell you, ‘If I do this, I can reduce my emissions and also reduce my cost.’”
— Alison Dimond Kardos, Director of Reporting Strategy, Buzzword
and the new tranche of detailed data could bring significant benefits for both compa- nies and their investors.
“If a company doesn’t already know this information, there’s definitely a benefit. There are costs associated with emissions. Every engine you’re running is costing something. Every megawatt of energy you’re using is costing some- thing,” Kardos said. “There are cost reductions to be found in this data and tracking it over time. It can tell you, ‘If I do this, I can reduce my emissions and also reduce my cost.’”
The public comment period for the proposed rule ended in mid-June.
AMANDA COYNE IS A VETERAN REPORTER AND COMMUNICATIONS PROFESSIONAL. SHE CURRENTLY SERVES AS PUBLISHER OF GEORGIA’S CITIES MAGAZINE AND COMMUNICATIONS ASSOCIATE FOR THE GEORGIA MUNICIPAL ASSOCIATION. HER WORK HAS ALSO APPEARED IN THE ATLANTA JOURNAL- CONSTITUTION, COSMOPOLITAN.COM, THE GREENVILLE NEWS, THE STATE, AND THE POST AND COURIER.
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