Companies weigh in on proposed SEC climate disclosure rule

FILE - A chemical fire burns at a facility during the aftermath of Hurricane Laura, Aug. 27, 2020, near Lake Charles, La. The Securities and Exchange Commission moved closer Friday, June 17, 2022, to a final rule that would dramatically change what public companies tell shareholders about climate change. Companies would also have to disclose risks related to the physical impact of storms, drought and higher temperatures brought on by global warming.

Companies would also have to report on the physical impact of storms, drought and higher temperatures brought on by global warming. They would have to explain how extreme weather events affect their finances, lay out plans for reducing climate risks and outline any progress made in meeting climate-related goals.

Auditing firms, trade groups and some lawmakers have repeatedly pointed to the proposal's inclusion of companies' indirect effects on the climate — known as Scope 3 emissions — as a thorny area to report on. Attorneys and auditors say the information could be difficult to obtain for companies with international suppliers or suppliers that are private companies.

The SEC’s climate disclosure rule would standardize what public companies report. It would also require them to seek independent certification for some reporting, which would provide investors with much more reliable information than what's currently disclosed, environmental attorneys, auditors and climate-data software companies say.

But the SEC’s proposed rule is far from certain. Opponents, including conservative trade groups, Republican lawmakers and others have questioned whether regulating emissions-related data falls under the SEC’s purview. As a result, attorneys say any finalized rule would almost certainly be challenged in court on the question of the commission's jurisdiction.

If enacted, the SEC’s measure would be a victory for President Joe Biden’s largely stalled climate agenda, a point agreed upon by critics and supporters alike.

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Companies weigh in on proposed SEC climate disclosure ruleThe SEC moved closer to a final rule that would dramatically change what public companies tell shareholders about climate change — both the risks it poses to their operations and their own contributions to the problem. Bad bad idea. Are there worldwide standards of measures? Republicans have been fighting Govt action on climate change for 50 years. If we started 50 years ago, we could be off the oil/gas crack pipe by now. 'Global warming' is deceitful rhetoric for fools to fall for. The earth's climate has been changing since the beginning of time. It is clear, to those who are awake & can see, that this is really about the heat of hell they've been planning to inflict upon us all. 🙏❤️🙏❤️🙏
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