(New York) Companies listed on Wall Street will soon be required to disclose their greenhouse gas emissions as well as their exposure to climate risk, according to a new regulation adopted Monday by the American regulator of financial markets (SEC).
Posted yesterday at 2:53 p.m.
The text approved Monday by three of the four leaders of the SEC is inspired by similar initiatives already adopted by several regulators, notably in Japan and Europe.
Companies must include in their annual report data on emissions resulting from their direct activities (known as “scope 1”) as well as energy consumption (“scope 2”).
The timetable is spread from 2024 to 2026 for implementation, depending on the size of the companies.
Later, they will also have to include information on so-called “scope 3” emissions, i.e. concerning the company’s suppliers and the consumption of the goods or services it produces (upstream and downstream).
Groups whose free float (total shares likely to be traded on the market) is less than 250 million dollars as well as those whose turnover is less than 100 million dollars ( with certain float limits).
Companies listed in New York will also have to report on climate-related risks and their effects, actual or potential, on the strategy, business model and forecasts of these companies.
“This is a watershed moment,” said one of the four SEC executives, Allison Herren Lee.
The executive who voted against, Hester Peirce, said the new regulations “(force) investors to see companies through the eyes of active shareholders for whom climate reputation is at least as important as financial performance.” .
US Treasury Secretary Janet Yellen welcomed the proposed new regulations. “Investors and companies have been asking for years for reliable information that can be used to assess climate-related risks and opportunities,” she said in a statement.
The US Chamber of Commerce said it was “concerned about the SEC’s prescriptive approach”, but nevertheless declared itself ready to work with the regulator “to establish clear and enforceable rules”.
“Listed companies will no longer be able to choose what they communicate on the climate and investors will have a much better idea of their exposure to climate risk”, reacted the Democratic Senator from Rhode Island Jack Reed.
“The Biden government is applying its climate program through the regulators because it does not have the votes to pass it in Congress”, on the other hand, criticized the Republican elected to the House of Representatives Patrick McHenry , calling the text “stubborn and misguided”.