SEC takes up narrower climate disclosure rule after heavy pushback from companies, others

abcnews.go.com:

The U.S. Securities and Exchange Commission has weakened a proposed climate disclosure rule after strong pushback from companies and others

WASHINGTON — The U.S. Securities and Exchange Commission has weakened a proposed climate disclosure rule after strong pushback from companies and others, and will no longer require companies to report some greenhouse gas emissions.

Ahead of a planned vote by commissioners Wednesday, the SEC said the final version would not include requirements for publicly traded companies to report some indirect emissions known as Scope 3. Those don’t come from a company or its operations, but happen along its supply chain — for example, in producing the fabrics to make a retailer’s clothing — or that result when a consumer uses a product, such as gasoline.

Companies, business groups and others had fiercely opposed requiring Scope 3 emissions when the SEC proposed its rule two years ago. They said quantifying such emissions would be difficult, especially in getting information from international suppliers or private companies.

The SEC said it had dropped the requirement after considering comments from companies and others related to the cost of reporting Scope 3 emissions and the reliability of such information. Environmental groups and others in favor of more disclosure had argued that Scope 3 emissions are usually the largest part of any company’s carbon footprint and that many companies are already tracking such information.

The final rule also reduces reporting requirements for other types of emissions, known as Scope 1 and 2. Scope 1 emissions refer to a company’s direct emissions, and Scope 2 are indirect emissions that come from the production of energy a company acquires for use in its