The Securities and Exchange Commission (SEC) recently released new proposed rules relating to sustainability, requiring that companies provide more in-depth information on how they’re assessing and addressing climate-related disclosures to investors. It’s a big step for corporate America.

Among crypto-linked companies, crypto miners would be the most affected by such rules, given their demand for large amounts of energy to run their operations.

But the question still begs, how should organizations and leaders aim to become more environmentally conscious and what do these new rules actually mean for the future of sustainable business?

According to Michael Wilson, COO of 1 Global Carbon Exchange (1GCX), an organization that aims to facilitate a free and inclusive marketplace for individuals and institutions to hedge against climate change and associated regulatory risk with a broad offering of digital assets, said that the recent climate reporting proposal spotlights the first of many environmental reporting requirements, however, they are incomplete and outside the scope and jurisdiction of the SEC.

“To prevent environmental disaster and mitigate the damages of today and our recent past, we must develop systems that take the negative environmental externalities of industry and turn them into net positives.,” said Wilson. “It’s imperative to deploy free-market solutions formed to integrate carbon-negative processes through the broader economy and institutions to hedge against climate change. Incentives and rewards need to be at the forefront of this economic and environmental endeavor. 65% of Russell 1000 companies already present annual, voluntary, sustainability reports. To propose a mandate when 1) the direction of the market is already heading in the desired direction at a rapid pace and 2) the implications of scope 3 emissions having yet to be understood, is remarkably shortsighted. Companies are constantly tempted to privatize or seek alternative forms of investment. If regulatory oversteps continue to occur capital contributions will see themselves privatized and taken out of the purview of the agency (SEC) itself. Leaving another agency to bear the burden and the spirit of this proposal to go unfulfilled.”