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What the New SEC Rules Mean
to the Professional Cleaning Industry
The gist of this ruling is that over the next few years, publicly traded companies in the U.S. will have to disclose their climate-related risks and their adaptation strategies.
This applies to many companies in the jansan industry.
On Wednesday, March 6, 2024, the Securities and Exchange Commission (SEC) "adopted rules to enhance and standardize climate-related disclosures by public companies and in public offerings," according to their press release.
The news story says that the rules reflect the SEC's continued efforts to respond to global investors "who demand consistent, comparable, and reliable information about the financial effects of climate-related risks on a registrant's operations and how it manages those risks."
A registrant is any company that files documents with the SEC.
The gist of this ruling is that over the next few years, publicly traded companies in the U.S. will have to disclose [their] climate-related risks and their adaptation strategies.
It will also require businesses to disclose their direct and indirect release of greenhouse gas emissions and what steps they are taking to mitigate them.
Whether human-made or not, greenhouse gas emissions are the root cause of climate change and the cause of many of the extreme weather events we have witnessed in recent years. These extreme weather events have resulted in record losses exceeding $1 billion in the U.S. in 2023. *
I compare the SEC ruling to a CARFAX® report. But instead of cars, the focus here is on protecting the environment and promoting good business practices - the essence of sustainability.
While I am very supportive of this new ruling, I should add that it is not without controversy. Many businesses in the U.S. are opposed to it for a variety of reasons.
However, others claim it does not go far enough. Europe and California, for example, are already preparing guidelines that surpass the disclosures adopted by the SEC last week.
So, what does this SEC ruling mean for the professional cleaning industry?
It means reporting on environmental risks is coming, whether one believes in mankind's contribution to climate change or not.
Further, it encourages our industry's adoption of sustainability to minimize risks and ensure business continuity.
*National Centers for Environmental Information
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The mission of The Ashkin Group is to transform industries with responsible, sustainable business practices.
Our Mission: To transform industries with responsible, sustainable business practices.
The Ashkin Group is the leading advocate for Sustainability and Green Cleaning in the professional cleaning industry.
By being leaders, we feel it is our responsibility to provide you with the latest news and resources you need to implement a sustainability strategy in your organization and enhance your Green Cleaning practices.
Together, we can make a big impact on human health, help your organization reduce costs, and protect the environment today and for future generations.
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