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These proposed rules follow the GHG Protocol and require disclosure of three types: Scope 1 emissions — those produced by the company in its operations;Scope 2 emissions — those produced by direct suppliers, mainly of electricity;Scope 3 emissions — those produced up and down a company’s supply chain (NOTE: the SEC acknowledges that disclosure of Scope 3 emissions is much more difficult to quantify and provides both more time to comply and allows for a materiality standard to determine what has to be disclosed.); Other key aspects of the proposed regulations: Materiality — all of the disclosures in item 1 above are subject to the company’s determination of which climate issues and risks have material impact on the business.

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The court filing — and its likely acceptance — doesn’t alter how employers and their total rewards professionals currently operate their compensation and employee classification policies.

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The findings suggest that, while target total direct compensation (TTDC) growth has slowed, the design and delivery of incentive pay are becoming more nuanced — and, in some cases, more complex — in response to continued volatility and companies seeking to attract, retain and incentivize top-tier talent.

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This focus will have ongoing implications for organizations’ total rewards and workforce strategies.

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