What It Is

ISO 14064 is the international standard family (ISO 14064-1:2018, -2:2019, -3:2019) for greenhouse gas (GHG) quantification, reporting, and verification. It provides a modular framework for organizations to develop credible GHG inventories, project reductions, and assurance processes using a principle-based approach emphasizing relevance, completeness, consistency, transparency, and accuracy.

Key Components

• **Three partsPart 1 (organizational inventories), Part 2 (projects), Part 3 (validation/verification).
• Core elements include boundary setting (organizational/operational, Scopes 1-3), baseline scenarios, monitoring plans, and risk-based assurance.
• Built on GHG Protocol alignment; no fixed controls but structured workflows for data quality and uncertainty management.
• Compliance via third-party verification statements, not traditional certification.

Why Organizations Use It

• Meets regulatory demands (e.g., CSRD, SB-253) and enables emissions trading, green finance.
• Drives internal efficiencies, Scope 3 hotspot identification, stakeholder trust.
• Mitigates greenwashing risks through independent assurance.

Implementation Overview

• Phased approach: governance, boundary design, data systems, reporting, verification.
• Suited for all sizes/industries; 6-12 months typical for mid-sized firms.
• Requires cross-functional teams, software tools, optional ISO 14065-accredited verifiers.

What It Is

U.S. SEC Cybersecurity Rules (Release No. 33-11216) is a regulation mandating standardized disclosures for public companies under the Exchange Act. Its primary purpose is to enhance investor protection through timely, comparable information on cybersecurity incidents, risk management, strategy, and governance. It adopts a materiality-based approach aligned with securities law precedents like TSC Industries v. Northway.

Key Components

• **Incident disclosureForm 8-K Item 1.05 requires reporting material incidents within four business days of materiality determination.
• **Annual disclosuresRegulation S-K Item 106 covers risk processes, third-party oversight, board/management roles.
• Inline XBRL tagging for structured data.
• Built on existing disclosure controls; no fixed controls, emphasizes processes over technical details.

Why Organizations Use It

Public companies comply to meet legal obligations, avoid enforcement actions (e.g., fines, injunctions), reduce information asymmetry, and build investor confidence. Benefits include integrated risk management, board oversight enhancement, and market efficiency.

Implementation Overview

Involves cross-functional playbooks, materiality frameworks, incident workflows, and XBRL readiness. Applies to all Exchange Act registrants (domestic, FPIs, SRCs, EGCs). No certification; focus on internal controls, phased compliance from Dec 2023.