SEC will require some companies to disclose their greenhouse emissions
Newsy
The new corporate disclosure rules bring the U.S. closer to the European Union and to California, both of which already have similar rules.
The U.S. Securities and Exchange Commission on Wednesday approved a rule that will require some public companies to report their greenhouse gas emissions and climate risks, after last-minute revisions that weakened the directive in the face of strong pushback from companies.
The rule was one of the most anticipated in recent years from the nation’s top financial regulator, drawing more than 24,000 comments from companies, auditors, legislators and trade groups over a two-year process. It brings the U.S. closer to the European Union and California, which moved ahead earlier with corporate climate disclosure rules.
The SEC rule passed 3-2, with three Democratic commissioners supporting it and two Republicans opposed.
Since the SEC proposed a rule two years ago, experts had said it was likely to face litigation almost immediately. SEC Chairman Gary Gensler, one of the Democrats, acknowledged that was a factor the agency considered as it worked toward a final rule.
“We’ve seriously considered what people have said about our legal authorities,” Gensler said on Wednesday.
