Key Points
Nov 20 (Reuters) - U.S. Securities and Exchange Commission (SEC) officials have told lobbyists and corporate executives in recent days that the agency's long-anticipated climate rules may scale back some of the most demanding greenhouse gas emissions disclosure requirements that it had proposed...
In March 2022, the SEC proposed requiring publicly listed companies to disclose climate risks, including their Scope 3 emissions when they are "material" and when companies have set reduction targets for them...
In private meetings with representatives of companies and other stakeholders, some SEC officials have said that mandating Scope 3 disclosures could make the rule more vulnerable to legal challenges which, if successful, could tie the agency's hands when writing other rules, according to the sources...
The sources, who requested anonymity to talk about private conversations, said SEC officials did not indicate that a final decision has been made regarding the emission disclosure rules.. Nevertheless, the deliberations indicate that the agency's top brass, led by Chair Gary Gensler, are inclined to back off from the proposal to make Scope 3 emission disclosures mandatory, the sources added...
The agency could still pursue a compromise, including requiring only companies that already report Scope 3 emissions for other legal jurisdictions to make disclosures, or letting companies provide the information separate from regulatory filings which would reduce legal liability, according to other industry participants tracking the rule...
