{"id":419728,"date":"2022-03-21T21:40:19","date_gmt":"2022-03-21T18:40:19","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/sec-proposes-firms-disclose-climate-risks-emissions-data\/"},"modified":"2022-03-21T21:40:19","modified_gmt":"2022-03-21T18:40:19","slug":"sec-proposes-firms-disclose-climate-risks-emissions-data","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/sec-proposes-firms-disclose-climate-risks-emissions-data\/","title":{"rendered":"#SEC proposes firms disclose climate risks, emissions data"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2a42f8abf9a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2a42f8abf9a\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/sec-proposes-firms-disclose-climate-risks-emissions-data\/#%E2%80%9CSEC_proposes_firms_disclose_climate_risks_emissions_data%E2%80%9D\" >&#8220;SEC proposes firms disclose climate risks, emissions data&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/sec-proposes-firms-disclose-climate-risks-emissions-data\/#Legal_challenges\" >Legal challenges<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CSEC_proposes_firms_disclose_climate_risks_emissions_data%E2%80%9D\"><\/span>&#8220;SEC proposes firms disclose climate risks, emissions data&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n<\/aside>\n<p>The Securities and Exchange Commission on Monday proposed requiring US-listed companies to disclose a range of climate-related risks and greenhouse gas emissions, with some Republicans saying the rules would amount to government overreach.<\/p>\n<p>The agency unveiled its long-anticipated draft rule under which companies would disclose their own direct and indirect greenhouse gas emissions, known as Scope 1 and Scope 2 emissions. It would also require companies to disclose emissions generated by their suppliers and partners, known as Scope 3 emissions, if they are material.<\/p>\n<p>SEC chair Gary Gensler said the agency was responding to investor demand for consistent information on how climate change will affect financial performance of companies they invest in. But prominent Republicans accused the regulator of overstepping its legal authority, and the US Chamber of Commerce vowed to fight parts of the rule.<\/p>\n<p>The draft proposal, subject to public feedback and likely to be finalized later this year, should help investors get the information they are seeking while also increasing the reporting burden for Corporate America.<\/p>\n<p>It would also require companies to disclose the \u201cactual or likely material impacts\u201d that climate-related risks will have on their business, strategy and outlook, including physical risks as well as possible new regulations such as a carbon tax.<\/p>\n<p>Companies that have set emissions goals or announced other plans to transition away from fossil fuels would have to provide details on how and when they expect to do so. \u201cCompanies and investors alike would benefit from the clear rules of the road,\u201d Gensler said.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/Patrick-Toomey-sec-climate.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"Sen. Pat Toomey\" class=\"wp-image-21602824\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/Patrick-Toomey-sec-climate.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/Patrick-Toomey-sec-climate.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/Patrick-Toomey-sec-climate.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Republicans, including Sen. Patrick Toomey, accused the regulator of overstepping its legal authority.<\/figcaption><figcaption><span class=\"credit\">Getty Images<\/span><\/figcaption><\/figure>\n<p>Sen. Patrick Toomey, the Senate Banking Committee\u2019s top Republican, blasted the rule, saying it \u201cextends far beyond the SEC\u2019s mission and expertise.\u201d<\/p>\n<p>Progressives and activist investors have pushed for the SEC to require Scope 3 emissions disclosure to hold companies accountable for all the carbon dioxide and methane they help generate. Corporations have been pushing for a narrower rule that will not boost compliance costs too sharply.<\/p>\n<p>\u201cThis proposal will be the light in a pathway toward addressing President Biden\u2019s priority of disclosing climate risk to investors and all areas of our society,\u201d said Tracey Lewis, a policy counsel at Washington-based advocacy group Public Citizen. \u201cThere will be a lot of critics,\u201d she added.<\/p>\n<p>The SEC said the Scope 3 requirement would include carve-outs based on a company\u2019s size, and that all the emissions disclosures would be phased in between 2023 and 2026. It was not im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>tely clear how many companies would have to make Scope 3 disclosures, given they would have largely have the discretion to decide what counts as \u2018material.\u2019<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/sec-climate2.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"A flag outside the U.S. Securities and Exchange Commission headquarters\" class=\"wp-image-21602829\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/sec-climate2.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/sec-climate2.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/sec-climate2.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>The agency unveiled its long-anticipated draft rule under which companies would disclose their own direct and indirect greenhouse gas emissions, known as Scope 1 and Scope 2 emissions.<\/figcaption><figcaption><span class=\"credit\">Bloomberg via Getty Images<\/span><\/figcaption><\/figure>\n<p>The Chamber of Commerce, the country\u2019s biggest business lobby, called the proposal too pre<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">script<\/a>ive and complained it would force companies to disclose information that was largely immaterial at the expense of more meaningful data.<\/p>\n<p>\u201cThe Supreme Court has been clear that any required disclosures under securities laws must meet the test of materiality, and we will advocate against provisions of this proposal that deviate from that standard,\u201d Tom Quaadman, an executive vice president with the group, said in a statement.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Legal_challenges\"><\/span>Legal challenges<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The SEC spent the past week shoring up the draft against potential legal challenges, six sources told Reuters.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/sec-climate1.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"The SEC's headquarters.\" class=\"wp-image-21602828\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/sec-climate1.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/sec-climate1.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/sec-climate1.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>The draft proposal, subject to public feedback and likely to be finalized later this year, should help investors get the information they are seeking while also increasing the reporting burden for Corporate America.<\/figcaption><figcaption><span class=\"credit\">AFP via Getty Images<\/span><\/figcaption><\/figure>\n<p>Corporate groups have argued there is no agreed methodology for calculating Scope 3 emissions, saying it can lead to double-counting, and that providing so much detail would be burdensome and would expose companies to litigation if third-party data ends up being wrong.<\/p>\n<p>The SEC tried to address that concern by proposing Scope 3 disclosures would be protected by a legal safe harbor that already exists for companies\u2019 forward-looking statements.<\/p>\n<p>Any legal challenges to the rule will likely argue that the SEC lacks the authority to require Scope 3 emissions data, something the agency\u2019s lone Republican Commissioner Hester Peirce said on Monday in voting against the proposal.<\/p>\n<p>Some experts said the SEC\u2019s authority in this area was clear, noting investors poured more than $649 billion into environmental, social and governance-focused funds worldwide last year and were calling for better data.\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/03\/21\/sec-proposes-firms-disclose-climate-risks-emissions-data\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;SEC proposes firms disclose climate risks, emissions data&#8221; The Securities and Exchange Commission on Monday proposed requiring US-listed companies to disclose a range of climate-related risks and greenhouse gas emissions, with some Republicans saying the rules would amount to government overreach. The agency unveiled its long-anticipated draft rule under which companies would disclose their own&#8230;<\/p>\n","protected":false},"author":1,"featured_media":419729,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/Gary-Gensler-sec-climate.jpg?quality=90&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[127029,71920,43485,10595,72976],"class_list":["post-419728","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-3-21-22","tag-carbon-emissions","tag-climate-change","tag-environment","tag-securities-and-exchange-commission"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/419728","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=419728"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/419728\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/419729"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=419728"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=419728"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=419728"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}