This browser is not actively supported anymore. For the best passle experience, we strongly recommend you upgrade your browser.
viewpoints
Welcome to Reed Smith's viewpoints — timely commentary from our lawyers on topics relevant to your business and wider industry. Browse to see the latest news and subscribe to receive updates on topics that matter to you, directly to your mailbox.
| less than a minute read

Explanation of SEC Scope 3 reporting in proposal

Scope 3 emissions are associated with a company’s value chain, such as emissions from purchased goods (upstream) and from use and disposal of its products (downstream) – and requiring disclosure is a bold move by the SEC.  See below for explanation of proposed rule and expected next steps.  On a related note, there is a new Climate Risk Unit (CRU) formed at the CFTC.  The CFTC together with other regulators are looking at providing guidance on risks to financial system relating to climate.   Currently, there are only very limited instances when CFTC-regulated market participants need to provide any disclosures, but this is likely to change.

On March 21, 2022, the U.S. Securities Exchange Commission (“SEC”) approved and released a proposed rulemaking package (the “Proposed Rule”) that would enact sweeping changes to climate-related disclosures. One key component of the Proposed Rule is a reporting requirement for certain Scope 3 emissions.

Tags

esg

Latest Insights

post featured image
post featured image