Under the SEC proposal, issuers would be required to disclose their Scope 3 emissions if they are material or if reduction targets had been set for them. It has not been confirmed when the rules are likely to take effect.
The SEC Factsheet, Enhancement and Standardization of Climate-Related Disclosures12, outlines the proposed reporting rules including Scope 3:
“Newly proposed rule by the US Securities and Exchange Commission on March 21, 2022 requiring SEC-registered domestic and foreign companies to disclose climate-related information in registration and periodic reports.”
“The proposed disclosures are similar to those that many companies already provide based on broadly accepted disclosure frameworks, such as the Task Force on Climate-Related Financial Disclosures and the Greenhouse Gas Protocol.”
“Scope 3: Indirect emissions from upstream and downstream activities in a registrant’s value chain (Scope 3), if material, or if the registrant has set a GHG emissions target or goal that includes Scope 3 emissions, in absolute terms, not including offsets, and in terms of intensity.”