US Climate Disclosure Rules: Not Perfect But Still A Victory

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I have 25 years of experience in sustainable development, energy and climate action. As CEO of the We Mean Business Coalition (WMBC), I work with our partners to provide the lodestar to guide companies to net-zero.

the country’s first federal-level rules requiring public companies to disclose information on their climate-related risks and greenhouse gas emissions. This week the US Securities and Exchange Commission voted, nearly two years after the initial proposal, to adopt the country’s firstRoughly 2,800 U.S. companies will have to make the disclosures and about 540 foreign companies with business in the US will have to report information related to their emissions.

Environmental groups have picked on this, and other parts of the rules that have been weakened, to suggest they may even go so far as First, Ukraine Shoots Down Two of Russia’s A-50 Radar Planes. Then Russia Prepares A Replacement A-50. So Ukraine Targets Its Factory.The rules are not perfect. The absence of Scope 3 emissions is disappointing, if predictable, especially as other jurisdictions, such as Europe and, closer to home, the state of California, have included Scope 3 emissions in their disclosure legislation.

Clear rules for companies and comparable information for investors on climate-related risks are critical components of well-functioning capital markets and the rules adopted this week will improve the transparency so sought by businesses and investors.

 

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