The SEC's new rule mandates certain U.S. public companies to disclose climate risks and greenhouse gas emissions, fostering transparency in climate-related matters. However, the final rule excludes reporting of "Scope 3" emissions, a significant aspect of a company's carbon footprint. While aimed at providing investors with relevant information, the rule's lack of inclusivity limits its effectiveness. Challenges to the rule are expected due to the SEC's perceived authority over climate issues.
