SEC's New Climate Disclosure Rules Spark Controversy

The compromise on climate disclosure rules has led to criticism from both business and environmental groups, with legal challenges anticipated.

The SEC adopted new climate disclosure rules requiring large public companies to report financial risks associated with climate change and their direct greenhouse gas emissions.
The final rules, seen as a compromise, have drawn criticism from both business and environmental groups, with threats of litigation from both sides.
Scope 3 emissions, which account for most of a company's total climate impact, are notably excluded from the final rules.
The rules aim to provide investors with consistent, comparable, and decision-useful information, despite being scaled back from the original proposal.
Critics argue the watered-down rules fail to fully account for companies' climate pollution, potentially keeping investors in the dark about significant financial risks.