New SEC Climate Disclosure Policy

Wall Street’s top regulatory body adopts a new climate disclosure policy.

The Securities and Exchange Commission set new rules saying large public companies will not have to report their emissions generated by customers and suppliers.

However, despite the SEC dropping the requirements, the new rule will force firms to spill the beans on their direct emissions and the emissions linked to their energy purchases. Businesses will also need to start divulging their financial exposure to climate risks, such as severe weather events like hurricanes and wildfires by next year. And they will have until 2026 to begin disclosing their emissions.

Smaller firms, which make up most of U.S. companies, will be exempt from reporting their greenhouse gas emissions. Even with the scaled down rule, many business groups say the SEC is overstepping its authority. Climate activists are also disappointed because data suggests customers and suppliers can account for up to 75% of a company’s overall emissions.