Experts: SEC or not, Scope 3 GHG disclosure requirements coming

It’s no longer a question of if regulators will require companies to disclose their greenhouse gas (GHG) emissions. It’s a question of when, experts told attendees during the opening session of Compliance Week’s virtual ESG Summit on Tuesday.

“The requirement to disclose GHG emissions will find you,” said independent consultant Doug Hileman as part of a discussion on the regulatory landscape for environmental, social, and governance reporting.

Referring to the Securities and Exchange Commission’s proposed climate-related disclosure rule, which would require public companies to disclose GHG emissions of their value chain (Scope 3 emissions), Hileman advised, “Whether the SEC includes Scope 3 or not (in its rule), it won’t matter. You need to gear up to do it.”