SEC adopts landmark – but weakened – climate disclosure rules

Scope 3 emissions are out and mandatory disclosure of Scope 1 and 2 emissions is restricted to those from larger companies when they are ‘material’ to business

The US Securities and Exchange Commission has voted to adopt the country’s first federal requirements for public companies to disclose information on their climate-related risks and greenhouse gas emissions. But after nearly two years of intense lobbying by industry, as well as threats of litigation from the same interests and Republican politicians, the SEC has adopted final climate disclosure rules that are significantly weaker than those proposed by the commission in March 2022 and those being implemented in Europe and California.