SEC Weakens Climate Disclosure Rule, Impact on Investors
The U.S. Securities and Exchange Commission approved a rule requiring some public companies to report their greenhouse gas emissions and climate risks, but faced legal challenges and criticism for weakening the directive in response to corporate lobbying. The rule, passed 3-2, does not require reporting of some indirect emissions known as Scope 3 and reduces reporting requirements for other emissions. The decision has sparked legal challenges and criticism from both sides, with environmental groups advocating for more disclosure and companies arguing that quantifying such emissions would be difficult. The rule will affect publicly traded companies in the U.S. and foreign companies with business in the U.S., with the largest companies required to start reporting emissions for fiscal year 2026.
