have pledged to become carbon neutral in coming decades. Consistent updates on how much pollution they generate help ensure that climate pledges aren’t just greenwashing or making false promises.
If the rules go into effect, public companies would need to share greenhouse gas emissions from their operations and electricity use. The SEC also sought to hold some companies responsible for indirect emissions that come from their supply chains and consumers using their products, a more contentious disclosure. Some companies have excluded these indirect emissions from climate pledges, arguing that this pollution is out of their control.
About one-third of companies already disclose at least some of their emissions or climate risks in annual reports, according to the SEC. But without federal standards for greenhouse gas emissions reporting, it’s difficult for investors to compare companies’ environmental impacts with each other. For example, two companies might claim to be carbon neutral — but one company might includeThe SEC also called on public companies to be more transparent about how they plan to reach their climate goals.
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