Dive Brief:
- The Securities and Exchange Commission (SEC) will not require all publicly traded companies to disclose the carbon emissions from their vendors, suppliers and other third parties across their supply chains, but will limit the mandate to businesses that have already set goals for curbing such “scope 3” emissions, SEC Chair Gary Gensler said.
- “If a company decides, ‘I have made no commitment to the future on that and it’s not material to my investors and my operations under the Supreme Court test of materiality,’ you don’t have a disclosure obligation on scope 3,” Gensler said Tuesday.
- “But if you have made a commitment to the public about the future path [regarding scope 3 emissions], then your investors want to understand how you’re managing that,” he said during a webcast hosted by The Wall Street Journal.
Dive Insight:
Gensler wants companies to follow detailed rules for reporting on climate risk, asserting that businesses and investors will benefit from clear, uniform company disclosures on the costs from global warming.
The SEC aims to require companies to describe on Form 10-K…
