Navigating ESG and SEC Compliance

Meeting the moment: How to tackle ESG and SEC compliance rules

The environmental, social, and governance (ESG) reporting landscape is undergoing significant transformation — but UL Solutions is at the forefront, providing the expertise and tools necessary for corporations to confidently navigate reporting on ESG criteria, such as those in the proposed U.S. Securities and Exchange Commission (SEC) climate disclosure regulations.  While the SEC’s compliance dates may seem far into the future following the regulator’s pause announced in April 2024, the reality is, now is still the time to take the proactive steps that can set your company apart.

The global ESG reporting shift

Embracing climate disclosure mandates

From Europe, the Middle East and Africa to the Asia-Pacific region to North America, regulatory bodies worldwide are intensifying their focus on climate-related disclosures. The SEC's recent rulemaking is a testament to this shift, with companies mandated to offer a clear picture of their climate risk management, governance and strategy. Consider just some of the SEC's climate disclosure rule's key points and highlights businesses will be facing:

• Public companies will be required to standardize their reporting on climate-related risks and their financial impact
• Enhanced disclosures will cover governance of climate risks, board oversight and material climate-related targets and goals
• Quantitative data on scope 1 and scope 2 greenhouse gas emissions must be reported by large filers (LAFs) and accelerated filers (AFs), with phased-in assurance beginning in 2029
• Additional financial statement footnotes will be necessary to disclose climate-related targets, goals and transition plans, subject to specified thresholds
• The reliability of disclosures is supported as they become a part of mandatory SEC filings, thus reinforcing investor confidence

Managing climate risk: The call to action

Proactive measures for SEC compliance

Don't let the weight of compliance slow you down. UL Solutions provides companies of all sizes with advisory, software and verification services tailored to meet evolving ESG requirements and regulations.

Why choose UL Solutions?

Broad offerings and expert verification

UL Solutions distinguishes itself with a full-service approach to ESG Management. Our software and advisory offerings supporting ESG management include:

• A broad range of expert-led ESG management, including advisory, software and verification services* 
• Expert-led data verification tools that set the industry benchmark
• UL 360 ESG Data Management software for data collection, management, reporting and disclosure activities backed by domain expertise for more than 20 years
• Comprehensive scope 1, 2, and Scope 3 advisory and data reporting services that include ESG data management software for collecting, managing and reporting
• A proven 130+ year track record of independent service excellence

A holistic approach to ESG management

Full-spectrum ESG services by UL Solutions

Our expert-led and cutting-edge services equip enterprises, at every stage of the ESG journey, to better reach their sustainability and compliance challenges with offerings that can help companies to:

Mobilize

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• ESG training
• ESG double materiality assessment

• ESG materiality assessment
• ESG system readiness

Measure

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• ESG key performance indicators and methods
• Leading ESG data collection software
• Scope 1 and 2 and 3 carbon advisory and reporting
• ESG key performance indicators and methods
• Supplier data collection and action plans

Manage

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• ESG performance benchmark
• ESG system gap analysis with ESG data management software
• Collect all of your data points into one software solution for SEC reporting
• Validation and data integrity checks available across all metrics, allowing for verification of data
• Management system procurement gap analysis

Report

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• SEC data preparation with UL 360 ESG Data Management software

• SEC climate disclosure rule alignment

Assurance*

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• Enterprise Verification of Greenhouse Gas Statements to ISO 14064-3
• ESG pre-verification

*Verification and pre-verification engagements are conducted independently from advisory services.

Navigating towards compliance

Building a resilient ESG reporting infrastructure

Investing in the right infrastructure for ESG data collection, control and reporting positions for your company to meet both stakeholder expectations and upcoming SEC disclosures*. Start your ESG journey with UL Solutions by strategizing your business approach, assessing materiality, automating processes, collecting data and preparing for audits.