SEC Approves Weakened Climate Disclosure Rule

The Securities and Exchange Commission approved new requirements that public companies disclose their greenhouse-gas emissions, but dropped a key provision that was fiercely opposed by business groups.

The 3-2 vote in favor of the rule comes after a two-year process involving intense lobbying from some of the world’s biggest industries and influential climate groups. It has faced relentless criticism from corporations and Republican lawmakers who say the agency is reaching beyond its authority.  

“These rules will enhance the disclosures that investors have been relying on to make their investment decisions,” SEC Chair Gary Gensler said Wednesday. He said they would give investors consistent and reliable disclosures about climate risks.

In a backtrack from the SEC’s original proposal, the amended rule doesn’t require companies to report certain indirect emissions, including from their supply chains and customers’ use of their products, such as coal or crude oil. Companies had opposed the requirement, saying they would be overly burdensome and complex.