"Investor Demand for Climate Data Clashes with U.S. SEC Rules"

The International Sustainability Standards Board (ISSB) chair stated that investors are seeking data on indirect greenhouse gas emissions, which the new U.S. financial disclosure rules do not cover. The U.S. Securities and Exchange Commission (SEC) recently omitted the requirement for companies to disclose Scope 3 emissions from its climate change reporting rules, contrary to the voluntary standards developed by ISSB. Scope 3 emissions, which make up a significant portion of a company's carbon footprint, are seen as important by investors. While the SEC cited concerns about burdening companies and the reliability of reporting, other jurisdictions like the EU and California have passed laws mandating Scope 3 emissions disclosure.