The US Securities and Exchange Commission appears poised to enact new regulations regarding Scope 3 emissions for publicly traded companies.
Why the SEC?
The SEC's proposed rule requires reporting Scope 3 emissions if material or if the filer has a target for them. Companies must disclose these emissions separately from Scope 1 and 2 emissions, in absolute terms and by GHG intensity.
For calculating Scope 3 emissions, companies can use data directly from the company or emissions factors for specific activities. They must also detail the data sources used for calculation, including third-party reports, specific activity data, and approximations based on industry averages or economic studies.
Please note: The topics outlined below represent our best estimates of what the SEC might mandate. These are subject to change and will be updated as new information emerges.
Summary Results
[{"id":1,"name":"Reporting: Materiality","text":"<div class=\"container mx-auto text-center leading-relaxed\">Discussion on how materiality is determined for climate-related risks and opportunities in SEC disclosures.</div>","disabled":false},{"id":2,"name":"Reporting: Targets","text":"<div class=\"container mx-auto text-center leading-relaxed\">Information on setting and reporting sustainability and emission reduction targets as per SEC guidelines.</div>","disabled":false},{"id":3,"name":"Data: Company","text":"<div class=\"container mx-auto text-center leading-relaxed\">Overview of company-specific data required for SEC climate-related reporting, including organizational structure and roles.</div>","disabled":false},{"id":4,"name":"Data: Emission Factors","text":"<div class=\"container mx-auto text-center leading-relaxed\">Guidance on emission factors used for calculating greenhouse gas emissions in compliance with SEC rules.</div>","disabled":false},{"id":5,"name":"Sources: 3rd Party Reports","text":"<div class=\"container mx-auto text-center leading-relaxed\">Details on using third-party reports for supplementing and verifying SEC-required climate disclosures.</div>","disabled":false},{"id":6,"name":"Sources: Activity Data","text":"<div class=\"container mx-auto text-center leading-relaxed\">Explanation of how activity data is collected and utilized for calculating emissions in SEC reports.</div>","disabled":false},{"id":7,"name":"Sources: Industry Averages","text":"<div class=\"container mx-auto text-center leading-relaxed\">Insights into the use of industry averages for estimating emissions where specific data is unavailable for SEC reporting.</div>","disabled":false},{"id":8,"name":"Sources: Economic Studies","text":"<div class=\"container mx-auto text-center leading-relaxed\">Information on incorporating findings from economic studies into climate-related financial disclosures for the SEC.</div>","disabled":false}]