TAKE ACTION:
Sign on to Support SEC Climate Disclosure: Protect Investors and The Planet

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On March 21, 2022, The Securities and Exchange Commission (SEC) released a proposed set of rules to Enhance and Standardize Climate Disclosures for Investors.   

ASBN put out a media release that same day encouraging business support for these highly anticipated rules. The media release can be found here.

Under the SEC’s proposal, U.S. companies would be required to have some of their carbon emissions included in regulatory filings. Scopes 1 and 2 greenhouse gas (GHG) emissions will need to be included in annual filings, such as 10-Ks. Additionally, indirect emissions will need to be included from upstream and downstream activities (scope 3), if material, or if the company has set a GHG emissions target or goal that includes scope 3 emissions, in absolute terms, not including offsets, and in terms of intensity. This type of Information about specific emissions is not standardized, if it is currently disclosed at all, and the SEC’s proposal for standardization is also helpful to improve transparency and verification. ASBN believes all three scopes are key, particularly scope 3, because they are the biggest and broadest components of a company’s impact on climate change for most sectors of industry. 

ASBN has been working to address serious and growing concerns about business activities which are unaccounted for, or currently escape disclosure as negative externalities, which at this point also do not affect the P&L or balance sheet of corporations. These negative externalities are effectively unaccounted for in today’s accounting requirements leading to a massive blind spot for businesses and investors as to the real impact of the contribution of businesses to the climate crisis.  

As a result of this proposal, we strongly support the SEC in their efforts to enhance and standardize climate disclosures. This is a necessary and long-overdue set of rules that will benefit businesses, consumers, and the planet through increased transparency. ASBN urges all members to sign on in support of these rules by the deadline of June 17, 2022.  

Click Here to Sign!

ASBN hosted a Webinar with SEC Director Renee Jones on April 13th 2022 to give an update on the proposed climate disclosure rules. View the recording here.

For any questions, please contact ASBN EVP and ESG Policy Co-Lead Ali-Reza Vahabzadeh (arv@asbnetwork.org).