SEC Receives Requests on PCAOB Rules for Transparency from Auditors and Investors
The Securities and Exchange Commission (SEC) has recently proposed a new rule that would require companies to disclose their greenhouse gas emissions and the impact of climate change on their business. This proposal is in response to growing investor demand for more transparency around environmental issues.
If the rule is implemented, companies would need to report their direct and indirect greenhouse gas emissions, as well as any carbon offset purchases. They would also be required to disclose the physical, transitional, and legal risks associated with climate change.
The SEC’s proposal is part of a broader trend towards sustainability reporting, as investors increasingly consider environmental, social, and governance (ESG) factors when making investment decisions. By providing more information on climate-related risks and opportunities, the SEC aims to help investors make more informed choices and encourage companies to address their environmental impact.
While the proposal has been met with some criticism from industry groups, many investors and environmental advocates see it as a positive step towards greater transparency and accountability. The SEC is expected to gather feedback on the proposal before making a final decision on whether to implement the rule.
