The Securities and Exchange Commission proposed a rule to compel companies to disclose climate-related risks, a major agenda item for the Biden administration that would lead to indirect pressure on the private sector to turn away from fossil fuels and reduce carbon emissions.
The rule proposed Monday, which is sure to meet legal and political resistance from the industry and Republicans, creates guidelines for how and what companies must report to investors about how their operations affect the climate. It says companies must report direct and indirect greenhouse gas emissions — reports that would be audited by an outside party.
The SEC organizes corporate emissions into three categories, known as scopes. Scope 1 includes direct emissions, Scope 2 refers to indirect emissions, such as those involved in the use of electricity, and Scope 3 measures the emissions of other entities, such as suppliers or customers in a company’s value chain.
Gensler was reportedly concerned that a rule that was too tough might be successfully challenged in court and struck down, while the other two Democrats were on the side of more aggressive climate reporting guidelines. “Setting climate policy is the job of lawmakers, not the SEC, whose role is to facilitate the investment decision-making process. Companies choose how best to comply and thrive under those policies, and investors decide which business strategies to back,” the duo wrote.
“Complex political issues like global warming and energy security require tradeoffs. In a democratic society, those tradeoffs must be made by elected representatives who are accountable to the American people,” the Pennsylvania Republican said. “With inflation at a 40-year high, gas prices skyrocketing, and Russia waging an energy-funded war, the last thing the American people need are unelected regulators advancing policies by partisan vote that will cause energy costs to further rise.
The American Securities Association came out against the rule after it was released. ASA CEO Chris Iacovella said the proposed rule prioritizes the interests of the “ESG-Industrial Complex” over investors.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
U.S. SEC set to unveil landmark climate change disclosure ruleThe U.S. securities regulator on Monday will unveil a landmark proposal requiring public companies to disclose greenhouse gas emissions, part of President Joe Biden's efforts to fight climate change.
Read more »
SEC climate-change rules could demand that companies account for pollution they don’t directly createThe SEC is poised to set new climate-change disclosure rules Monday, and all eyes are on whether the agency could force companies to regularly report the more complicated Scope 3 emissions that are out of their direct control.
Read more »
The SEC wants companies to disclose how climate change is affecting themUnder the rule proposals, companies would be required to share information about their greenhouse gas emissions as well as climate-related risks faced by their businesses.
Read more »
SEC proposes rule mandating companies tally greenhouse emissions, disclose climate change riskPublic companies would be required to disclose how climate-related risks will impact their businesses, how they plan to identify and manage climate risks and more, according to a new proposed rule.
Read more »
The SEC wants to know a lot more about what companies are doing about climate changeSEC Commissioners will be meeting Monday to propose rules to enhance disclosures regarding climate-related risks.
Read more »
The SEC proposes the first mandatory climate risk disclosure rulesFor the first time, companies could be required to disclose greenhouse gas emissions and their exposures to climate change risks to the SEC. The agency is set to vote on the proposed rule today.
Read more »