SEC Drops Scope 3 Emissions Requirement from Climate Disclosure Rules
The U.S. Securities and Exchange Commission's decision to remove Scope 3 emissions reporting aims to enhance the rule's legal resilience.
- The SEC is set to adopt Climate Related Disclosure Standards, likely in March, excluding mandatory Scope 3 greenhouse gas emissions reporting.
- Scope 3 emissions, related to a company's supply chain, have been a contentious point due to their complexity and legal challenges.
- The move aligns with concerns over legal and political challenges, including doubts about the SEC's authority to mandate such disclosures.
- Experts suggest that making Scope 3 reporting optional could balance investor interests with the practicalities of data collection.
- The decision diverges from EU regulations, raising questions about global sustainability reporting standards.