The Securities and Exchange Commission in March gave initial approval to the Enhancement and Standardization of Climate-Related Disclosures for Investors. These disclosures include three different categories:
- Scope 1 – Emissions that come directly from company-owned sources.
- Scope 2 – Indirect emissions from energy purchased, and consumed by a company.
- Scope 3 – All other indirect emissions that occur during the course of a company’s business.
One of the major proposed changes essentially eliminates the “materiality standard” for companies’ Scope 1 and 2 emissions disclosures. The …
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