David Lynn spoke to Agenda about the
Securities and Exchange Commission's (SEC) new climate
disclosure rule proposal, which will not reduce investors'
demands for more detailed emissions data in the short or long
term.
The proposed rule would require companies to disclose Scope 3
emissions – emissions that come from companies'
supply chains, use of products, and other emissions stemming from
the value chain – if the emissions are material or if they
are part of the company's emissions reduction targets.
"[The SEC] tried to propose an approach that will be more
palatable to companies, but overall, I think that aspect of the
proposal is going to be controversial and lead to criticism, and
may lead to litigation," David said. "It's a hard nut
to crack for companies because [Scope 3 emissions are] dealing with
things completely outside of [companies'] control and are
difficult to measure."
