SUSTAINABILITY SEC shelves Scope 3 plans
SUSTAINABILITY SEC shelves Scope 3 plans
Speaking after publication of the final rules regarding mandatory climate risk disclosure in the US , Gary Gensler , Chairman of the SEC , said : “ The final rules update Regulation S-K to require disclosure of material climaterelated risks faced by a company , as well as any governance and processes used by the company to manage climate-related risks .
“ In addition , if a company uses transition plans , scenario analysis or internal carbon prices to manage a material , climate-related risk , the final rules require disclosures about such use . Further , a company will be required to disclose material climaterelated targets or goals , plans for achieving those targets or goals and annual progress . As part of these disclosures , the final rules will require disclosures in Regulation S-K of material expenditures directly resulting from activities to mitigate climate-related risks as well as transition plans and targets or goals . “ Second , the final rules will require larger registrants to disclose direct emissions ( Scope 1 ) and emissions associated with energy purchases ( Scope 2 ) when those emissions are material . Registrants also will be required to file an attestation report with their Scope 1 and 2 emissions . Such attestation reports will improve accuracy and reliability of those metrics as well as the key assumptions , methodologies and data sources .
“ In the proposal , we took a layered approach to disclosure of Scope 3 greenhouse gas emissions . While many investors today are using Scope 3 information in their investment decision making , based upon public feedback , we are not requiring Scope 3 emissions disclosure at this time .”
128 May 2024