The Securities and Exchange Commission has scaled back its initial climate disclosure requirements for public companies, bowing to opposition from various sectors.
The revised rules demand less from companies regarding emissions reporting and climate risk disclosure than originally proposed.
Large firms must now report only emissions deemed "material" to their operations, with many small businesses exempt.
Significant climate-related risk disclosure remains mandatory, despite other softened requirements.
Key quote:
“Thanks to corporate lobbying, disclosure of the very real financial risks from climate change has fallen victim to the culture wars.”
— Allison Herren Lee, former acting chair and commissioner at the S.E.C.
Why this matters:
This development speaks to the ongoing tug-of-war between regulatory efforts to enhance climate transparency and the resistance from various industry sectors. It highlights the challenges of aligning business practices with environmental stewardship in the face of climate change, an issue that resonates deeply with investors, consumers, and policymakers alike.
Louisiana has pioneered ways for other states to discourage environmental protests around “critical infrastructure” projects. Much of it can be traced back to efforts by corporate lobbyists.
Two years ago, Gov. Jerry Brown signed an ambitious law ordering California utility companies to get 50 percent of their electricity from renewable sources by 2030. They may hit that goal a decade ahead of schedule.
