Amazingly, some organizations still consider corporate sustainability to be a buzzword and are just not "with it" when it comes to far-reaching implications. There is potential trouble ahead for these organizations and they could well be doomed to failure unless they realize that they need to educate themselves quickly and take action right now. This is far from being just an issue for "green" activists and is a matter of corporate life or death.

In early February, the SEC carbon disclosure finding caught many public companies off guard. There had nevertheless been a groundswell of opinion from pressure groups around the country and many petitions have been sent to the Securities and Exchange Commission over the years. Under the previous administration the commission had not acted, but now the SEC has issued an important clarification that is sure to prompt corporate action.

The SEC carbon disclosure finding means that companies have a clear responsibility to disclose anything related to climate matters as "material." This is fundamental to the decision-making process of investors. In other words, now that carbon related issues have been classified in this way, companies may no longer be vague and it will not be acceptable for them to say that climate issues are "unknown."

There have been many developments in the last year or so with regard to sustainability at the corporate level. Nothing much may have come out of the Copenhagen Summit, but domestically the American Clean Energy and Security Act was indeed passed by the House of Representatives. An executive order was issued by Pres. Obama mandating major government agencies to become sustainable in short order. We should not forget about the EPA's landmark finding that greenhouse gases were a hazard to public health as well.

The House of Representatives may well have passed the ACES Act, but the Senate is slow to act and it's unclear whether they will pass such a law in its current form. However, few doubt that some kind of legislation will be in the future and the SEC carbon disclosure finding should only help to emphasize to corporate chiefs that they must get their house in order from a point of view of sustainability.

SEC carbon disclosure findings require that publicly traded companies include specific climate change related data within any reports that they submit. If a company uses a lot of fossil fuel based energy, any potential legislation could severely impact his position and should be revealed. On the other hand, if a company has a considerable amount of property in areas prone to severe weather events caused by potential climate change, this should be discussed as well.

If the SEC carbon disclosure requirement is just "interpretive" does it have any teeth? You may not think that a company would be bound by its findings, but the company that does not act in a proper fashion could be seen as ducking the position.

Each and every organization must be sustainable and this theme should run throughout the decision-making process. When greenhouse gases are emitted as a consequence of using energy, the user is responsible. Legislation is sure to await those who fail to see this and if a company does not look at the impact of emissions in both its supply chain and its direct operations, it could face reputational difficulties.