Finance Knuggets

Feb 25, 2024

The SEC is reportedly scrapping plans to require public companies to disclose carbon emissions from their supply chains and end users as part of its long-awaited disclosure rules. This move is part of a broader retreat within the financial and corporate sector on environmental and social issues. The U.S. is playing catch-up to other jurisdictions, notably Europe and the U.K., where rules for requiring disclosures are further along and investors have been more aggressively pushing companies on their policies and operations. Additionally, more than 60 bills pending in state legislatures take aim at ESG investing factors, with states such as New Hampshire and Oklahoma taking active measures in this regard.

This news is significant as it reflects a shift in the regulatory environment and business culture when it comes to climate change. It also indicates a larger pullback in the quest to push companies to disclose and curb their carbon footprint, with top financial asset managers pulling out of Climate Action 100+ and political pressure playing a role in investment firms’ retreat. The SEC’s move to scrap the requirement for disclosure of scope 3 emissions, along with states actively restricting ESG investing of tax dollars, reflects the evolving landscape of climate-related regulations and policies.

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