SUSTAINABILITY | STRATEGIES
Ever since the Securities and Exchange Commission ( SEC ) proposed sweeping rule changes to enhance climate-related disclosures , the prospect of having to report scope 3 emissions has been top of mind for thousands of companies across the US .
Eighteen months on , however , it remains to be seen exactly what proportion of the plans will ultimately come into force , as a long-running public consultation on the matter continues .
Whatever happens , there is a very real possibility that the country ’ s largest companies will need to begin disclosing their climate risks by the end of 2023 , with others to follow next year .
At the heart of the SEC ’ s case is the suggestion that investors representing tens of trillions of dollars support disclosures because they recognise climate risks could later result in a host of financial headaches for organisations .
“ Investors need reliable information about climate risks to make informed investment decisions ,” said Gary Gensler , Chairman of the SEC , when the initial proposal was unveiled .
“ I believe the SEC has a role to play when there ’ s this level of demand for consistent and comparable information that may affect financial performance .”
Many agree , insisting climate-related disclosures are long overdue . Others worry that such regulations would create a mountain of extra work and say the
64 September 2023