Effective October 1, 2018, Delaware’s Certification of Adoption of Transparency and Sustainability Standards Act (the “Act”) is the first of its kind. The Act’s purpose is to enable Delaware entities to demonstrate their commitment to sustainability to the public.
To become a reporting entity under the Act, the entity’s governing body must first adopt resolutions creating standards and assessment measures of the impact of the entity’s activities on society and the environment. The proposed assessment measures must include any procedures for internal or external verification of the measures. However, the entity is free to rely on various sources in designing its standards and assessment measures without judgment from the Secretary of State.
After adopting the required resolutions, the entity can obtain certification under the Act by submitting a standards statement to the Secretary of State detailing the resolutions, making specific acknowledgments concerning its commitment to implementing and maintaining its standards and assessment measures, and paying the corresponding fees. Entity types that register or form with the Secretary of State must be in good standing.
Entities must file annual renewal statements between October 1 and December 31 of each year and remain in good standing to maintain certification under the Act.