Do Brag About Going Green - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Business/E-Business
Commentary
5/26/2010
04:25 PM
Lamont Wood
Lamont Wood
Commentary
50%
50%

Do Brag About Going Green

According to a little-known SEC rule modification, your firm's relation to climate change can be material, meaning that you are supposed to report it. But that can be a good thing.

According to a little-known SEC rule modification, your firm's relation to climate change can be material, meaning that you are supposed to report it. But that can be a good thing.If your enterprise is a public corporationand many SMBs arethe Securities and Exchange Commission has news: business or legal developments relating to the issue of climate change are covered by disclosure requirements. The SEC does not take a position for or against climate change being real, but does say that if global warming amounts to a material issue for your enterprise, if needs to be disclosed in financial filings.

The sections of financial reports that cover risk factors, business description, legal proceedings, and management discussion and analysis would all be appropriate places to discuss the possible impact of climate change. For instance, financial statements should cover the indirect consequences of regulation or business trends, including legal, technological, political and scientific developments regarding climate change that may create new opportunities.

That's where IT comes inwith opportunities. If you have modified your data center to cut greenhouse gas emissions, that puts you in a better position than your feckless competitors in the face of future regulations concerning such thingsnot to mention that fact that you probably also saved money on electrical power.

In other words, the information that you report can be positive. The real question, when it comes to disclosing, is whether the information is material. The old rule of thumb is that information is material if there is a substantial likelihood that a reasonable investor would consider it important when deciding whether to invest. Obviously, there's room for interpretation.

But with climate change getting more and more mindshare, green business practices are likely to be seen as more and more material. Who knowsmaybe that will make it easier to get green projects funded.

Don't Miss: SMBs Latest Uptime Awards Show Green Trends

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2021 State of ITOps and SecOps Report
2021 State of ITOps and SecOps Report
This new report from InformationWeek explores what we've learned over the past year, critical trends around ITOps and SecOps, and where leaders are focusing their time and efforts to support a growing digital economy. Download it today!
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

News
Pandemic Responses Make Room for More Data Opportunities
Jessica Davis, Senior Editor, Enterprise Apps,  5/4/2021
Slideshows
10 Things Your Artificial Intelligence Initiative Needs to Succeed
Lisa Morgan, Freelance Writer,  4/20/2021
News
Transformation, Disruption, and Gender Diversity in Tech
Joao-Pierre S. Ruth, Senior Writer,  5/6/2021
Register for InformationWeek Newsletters
Video
Current Issue
Planning Your Digital Transformation Roadmap
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll