Washington Report

Advocacy Updates from Washington D.C.

SEC Approves Climate Disclosure Rule

On March 6, 2024, the U.S. Securities and Exchange Commission (SEC) voted to approve a significantly scaled-back proposal to require publicly traded companies to disclose a variety of climate-related information, including details about the climate risks they face, the costs of severe weather events and, in some cases, their greenhouse gas emissions.

In addition to other aspects of the original proposal that were scaled back, the agency most notably dropped its so-called Scope 3 disclosures, which would have required certain large companies to provide data about the emissions generated by their suppliers and customers (their “value chain”). Opponents of the mandate argued that the provision was unworkable and risked roping in private companies that supply publicly traded ones, such as REALTORS® who are independent contractors but are affiliated with large real estate companies.

NAR’s comment letter to the SEC raised concerns about the original proposal, Scope 3 emissions and the proposal’s impact on the real estate industry.

SEC Climate Disclosures: SEC.gov | SEC Adopts Rules to Enhance and Standardize Climate-Related Disclosures for Investors