SEC appears ready to back down from stringent greenhouse gas disclosure requirements

The Securities and Exchange Commission won’t pursue the most stringent greenhouse gas disclosure requirements from the rules it’s expected to finalize

Citing unnamed sources, Reuters reports that the SEC removed the requirements for companies to disclose Scope 3 emissions, which were part of its original proposal published in March 2022.

Scope 3 emissions are greenhouse gasses emitted along the entire supply chain of a product through its use – from the extraction and processing of raw materials, to the manufacturing, the transportation along that chain, the use of the product, and its end life.

Critics questioned if the rule would survive legal challenges, as well as the difficulties and expense of data collection and measurement.

Once the SEC completes a final draft, the five commissioners must vote on it. There’s no clear timeline for the vote, and the draft can be revised before then, according to Reuters.