SEC revises climate disclosure regulation amid corporate resistance
The SEC has adjusted its climate disclosure requirements, easing mandates on emissions reporting following corporate objections.
Suman Naishadham reports for the Associated Press.
In short:
- The SEC will not enforce the reporting of certain indirect emissions known as Scope 3, which occur in a company’s supply chain or through consumer product use.
- The modified rule also scales back on the reporting of direct emissions (Scope 1) and indirect emissions from energy production (Scope 2), leaving it to companies to decide if such information is vital for investors.
- The regulation impacts a broad range of U.S. and foreign companies, eliciting over 16,000 comments from diverse stakeholders during the proposal stage.
Key quote:
“All public companies need to digest the final rules. Based on how the rules are set up, there isn’t a one-size-fits-all approach.”
— Michael Littenberg, attorney at Ropes & Gray
Why this matters:
This regulatory shift is pivotal for health outcomes as it affects how environmental risks are communicated to the public, influencing the decisions of healthcare professionals, scientists and policymakers. It underscores the tension between corporate interests and the need for transparency in environmental impact on a national scale.
As states and corporations increasingly head to court over climate change, a lawyer lays out an ethical roadmap to give the environment a louder legal voice.
