SEC Faces Tight Timeline for Climate Rules Before Election

SEC Faces Tight Timeline for Climate Rules Before Election

December 15, 2023, IFR News

Matt Franker’s commentary was included in an IFR News article on the Securities and Exchange Commission’s (SEC) finalization of climate disclosure rules prior to the 2024 presidential election. Matt comments on the finalization of a rule pertaining to indirect emissions from a company’s value chain, also known as Scope 3 emissions.

Matt explained how Scope 3 disclosure requirements are likely to be scaled down to relieve the compliance burden of private businesses that supply to public companies. “It arguably goes beyond the SEC’s authority to regulate non-SEC registrants and non-securities industry participants,” Matt said. He added that if Scope 3 disclosure is pulled from the final rules, companies that have significant business in the European Union are unlikely to be exempt from complying with the bloc’s Corporate Sustainability Reporting Directive.