SEC Drops Key Emissions Disclosure Requirements From Draft Climate Rules

"The U.S. Securities and Exchange Commission (SEC) has removed some of its most ambitious greenhouse gas emission disclosure requirements from corporate climate risk rules it is preparing to adopt, people familiar with the matter said on Thursday.

The SEC has dropped a requirement for U.S.-listed companies to disclose so-called Scope 3 emissions, which was included in its original draft of the rules published in March 2022, the sources said.

Scaling back these rules would be a blow for President Joe Biden's agenda to address climate change threats through federal agencies. Biden, a Democrat, has been under pressure from many lawmakers in his party to do more and move at a faster pace.

Scope 3 emissions account for greenhouse gases, such as carbon dioxide, released in the atmosphere from a company's supply chain and the consumption of its products by customers. For most businesses, Scope 3 emissions represent more than 70% of their carbon footprint, according to consulting firm Deloitte."

Chris Prentice, Isla Binnie, Jarrett Renshaw and Douglas Gillison report for Reuters February 22, 2024.


"Banks Backpedal On Climate Amid Federal Scrutiny, Anti-ESG Pressure" (The Hill)

"Republican Attacks on Biden’s Climate Law Raise Concerns Ahead of Election" (New York Times)

Source: Reuters, 02/23/2024