Overview
- 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.