The Securities and Exchange Commission (S.E.C.) approved new rules regarding the disclosure of climate risks by public companies, but the final version is considerably weaker than the original proposal. The rules mandate reporting of greenhouse gas emissions and climate-related risks but give greater leeway to corporations. Unlike the initial proposal, large companies are only required to disclose emissions they consider “material” to their bottom lines, excluding emissions along their entire value chain. Additionally, thousands of smaller businesses are exempt from reporting emissions. The final rules omit requirements for companies to disclose board members’ climate expertise. The decision faces opposition, with ten states planning to challenge it in court, arguing it exceeds the S.E.C.’s authority. Critics argue the weakened rules undermine efforts to address climate-related financial risks. However, some experts suggest that investor demand for climate-related information may drive companies to voluntarily disclose more data.

https://www.nytimes.com/2024/03/06/climate/sec-climate-disclosure-regulations.html