Sehoon Kim
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SEC approves first US climate disclosure rules: Why the requirements are much weaker than planned and what they mean for companies
Companies face new rules for disclosing their climate-related risks After two years of intense public debate, the SEC approved the nation’s first national climate disclosure ruleson March 6, 2024, setting out requirements for publicly listed companies to report their climate-related risks and, in some cases, their greenhouse gas emissions. The new rules are much weaker than those originally proposed. Significantly, the SEC dropped a controversial plan to require companies to report Scope 3 emissions – emissions generated throughout the company’s supply chain and customers’ use of its products. The rules do require larger companies to disclose Scope 1 and Scope…