Final SEC Climate Reporting Rule Considered a Win for Farmers - AgNet West
Final SEC Climate Reporting Rule Considered a Win for Farmers
The Securities and Exchange Commission (SEC) responded to concerns from the farming community and removed the Scope 3 reporting requirement from its final climate disclosure rule. The rule, which would have mandated greenhouse gas emissions reporting for supply chains, prompted significant opposition from agricultural organizations due to potential privacy issues and financial strain on small farms. The finalized SEC rules also reduce reporting requirements for Scopes 1 and 2 emissions.
The American Farm Bureau Federation (AFBF) had led efforts to eliminate Scope 3 from the requirements, emphasizing its burden on farmers, and praised the decision Securities and Exchange Commission. AFBF is also encouraging California to withdraw its Scope 3 reporting requirement as the U.S. Chamber of Commerce and others have recently challenged the state law and its national implications. While being supported by farm groups, the SEC’s disclosure rule has received significant criticism from organizations like Friends of the Earth, Earthjustice, and the Sierra Club.
Listen to the report below.
Brian German
Ag News Director / AgNet West
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”