Earlier this month, the Securities and Exchange Commission (SEC) released its newest rendition of their unified agenda. This agenda details upcoming regulations and potential deadlines that each ruling is projected to have. However, this deadline continues to face significant pushback from affected parties who realize this ruling is not in their best interest.
Over the last 10 months, the SEC has been pushing its climate disclosure rule through the hoops in the hopes that it gains support along the way. Despite their best efforts, many voices of opposition have surfaced highlighting the discrepancies in the proposal.
With the Commission’s newest hint at an April deadline for the final proposal, many have continued to express a variety of opinions. Proponents of the rule believe that it would provide much-needed transparency and standardization around companies’ material climate risks. While those who oppose the rule view it as a situation comparable to the ruling in West Virginia vs. EPA, indicating that the SEC continues to lack the statutory authority to implement such a rule.
Currently, the proposed rule aims to require companies to provide greenhouse gas emissions reporting to their appropriate investors. More specifically, these companies of all sizes would be required to report on direct and indirect Scope 3 emissions tracked through the value chain of their product. The requirements would stand to cost these companies up to $10.2 billion annually. A cost that not many can afford.
The need to bolster opposition to this rule is needed now more than ever. The Commission continues to overstep into areas in which it has no authority, and this rule is no exception. The rule itself would cause sheer chaos in an industry that has enough regulations to last a lifetime.