SEC’s proposed climate disclosure regulation may impact private companies

The US financial market regulator’s proposal for listed companies to disclose their climate-related risks may have the knock-on effect of listed alternative asset managers having to disclose the emissions of their underlying private companies.

Earlier this year, the US Securities and Exchange Commission proposed requirements for the country’s listed public companies to disclose information on climate-related risks. This would include reporting of companies’ Scope 1 and 2 emissions, and Scope 3 emissions’ categories.