The simplified proposal approved by the U.S. Securities and Exchange Commission (SEC) has drawn the ire of critics who believe weakening regulations will make it more difficult to hold companies accountable for pollution caused by their operations. There is.
what happened?
In 2022, the SEC will require companies to disclose the amount of pollution caused by direct business activities and the amount of indirect pollution caused by other actions in the value chain, such as transactions with suppliers and utilities. proposed a rule change that would require .
As The New York Times reported, the final version of the proposal, adopted in early March, would require companies to report only the pollution they directly cause. However, this language leaves some room for ambiguity in that reporting, as companies only need to consider it if they consider it to be “material to the bottom line.”
Smaller publicly traded companies would also no longer have to report the pollution they directly generate, and the proposal would also remove the requirement for companies to disclose the climate expertise of their boards of directors.
Why is this a concern?
According to the Times, SEC Chairman Gary Gensler argued that the proposal would “improve the consistency, comparability and reliability of disclosures” with feedback from investors and companies.
Some suggested that important data that could help policymakers monitor the severity of the pollution problem was slipping through the cracks.
“Thanks to corporate lobbying, disclosure of the very real financial risks posed by climate change has become a casualty of the culture wars,” said Alison Herren Lee, former acting chair and commissioner of the SEC. Ta.
The increase in global temperatures is mainly caused by contaminated fuels and is associated with several things that have a negative impact on our health and well-being. These include an increase in extreme weather events that have led to displacement, the recurrence of certain diseases, and reduced crop yields.
What is being done about this?
The SEC's ruling has already received backlash, with some arguing the rule goes too far and others saying it doesn't go far enough.
On March 14, Spectrum News reported that oil and gas groups, several states, environmental groups and others are filing a lawsuit against the SEC. This could ultimately create room for renegotiation. By supporting candidates and causes that are important to you, you can make your voice heard on this issue as it progresses.
The Sierra Club and Sierra Club Foundation say the authority “allows companies to 'selectively report' climate change risks for their operations, thereby fully meeting investor protection requirements.” “I will not be able to do that,” he claims.
“The new disclosure rules fall short of providing the complete and consistent information needed to assess the material financial risks that climate change poses to companies and investments,” said Dan Chu, executive director of the Sierra Club Foundation. ” he said.
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