SEC Adopts First Federal Climate Disclosure Rules

The new regulations require public companies to disclose climate-related risks and greenhouse gas emissions, excluding Scope 3 emissions.

The SEC's new rules mandate public companies to report on climate-related risks and greenhouse gas emissions, marking a significant regulatory step.
Scope 3 emissions, which account for the majority of many companies' emissions profiles, are not required in the disclosures due to industry pushback.
The rules apply to approximately 2,800 U.S. companies and 540 foreign companies operating in the U.S., aiming for greater transparency in capital markets.
Large companies must disclose Scope 1 and Scope 2 emissions, with phased implementation of reporting requirements over time.
Environmental groups criticize the omission of Scope 3 emissions, but some see the regulations as a victory for climate accountability.