In this file:

 

·         Gensler sees limit to SEC rule on carbon emissions disclosure

The Securities and Exchange Commission (SEC) will not require all publicly traded companies to disclose the carbon emissions from their vendors, suppliers and other third parties across their supply chains, but will limit the mandate to businesses that have already set goals for curbing such “scope 3” emissions, SEC Chair Gary Gensler said…

 

·         Proposed SEC Rule Requirements Nearly Impossible for Family Farms

The American Farm Bureau Federation warned the Securities and Exchange Commission (SEC) today about the consequences to rural America of the SEC’s proposed rule, “The Enhancement and Standardization of Climate-Related Disclosures for Investors.” The proposal would require public companies to report on Scope 3 emissions, which are the result of activities from assets not owned or controlled by a publicly traded company but contribute to its value chain. While farmers and ranchers would not be required to report directly to the SEC, this regulation would impose additional burdens as they provide almost every raw product that goes into the food supply chain…

 

 

Gensler sees limit to SEC rule on carbon emissions disclosure

 

Jim Tyson, LegalDive

June 17, 2022

 

Dive Brief:

 

o   The Securities and Exchange Commission (SEC) will not require all publicly traded companies to disclose the carbon emissions from their vendors, suppliers and other third parties across their supply chains, but will limit the mandate to businesses that have already set goals for curbing such “scope 3” emissions, SEC Chair Gary Gensler said.

o   “If a company decides, ‘I have made no commitment to the future on that and it’s not material to my investors and my operations under the Supreme Court test of materiality,’ you don’t have a disclosure obligation on scope 3,” Gensler said Tuesday.

o   “But if you have made a commitment to the public about the future path [regarding scope 3 emissions], then your investors want to understand how you’re managing that,” he said during a webcast hosted by The Wall Street Journal.

 

Dive Insight:

 

Gensler wants companies to follow detailed rules for reporting on climate risk, asserting that businesses and investors will benefit from clear, uniform company disclosures on the costs from global warming.

 

The SEC aims to require companies to describe on Form 10-K their governance and strategy toward climate risk and their plan to achieve any targets they’ve set for curbing such risk.

 

Companies would need to disclose their greenhouse gas emissions from their facilities (scope 1) and through their energy purchases (scope 2). Companies would also need to gain third–party attestations of carbon emissions estimates...

 

more

https://www.legaldive.com/news/Quaadman-gensler-sec-rule-carbon-emissions-disclosure-esg-ccmc/

 

 

Proposed SEC Rule Requirements Nearly Impossible for Family Farms

 

Source: American Farm Bureau Federation (AFBF)

June 17, 2022

 

The American Farm Bureau Federation warned the Securities and Exchange Commission (SEC) today about the consequences to rural America of the SEC’s proposed rule, “The Enhancement and Standardization of Climate-Related Disclosures for Investors.” The proposal would require public companies to report on Scope 3 emissions, which are the result of activities from assets not owned or controlled by a publicly traded company but contribute to its value chain. While farmers and ranchers would not be required to report directly to the SEC, this regulation would impose additional burdens as they provide almost every raw product that goes into the food supply chain.

 

The comments were filed on behalf of AFBF and 10 other agriculture organizations. The organizations state, “Our organizations and our members are committed to transparency in climate-related matters to inform our stakeholders in a manner consistent with existing practices in the agriculture industry. However, without changes and clarifications, the Proposed Rules would be wildly burdensome and expensive if not altogether impossible for many small and mid-sized farmers to comply with.”

 

AFBF President Zippy Duvall said, “Farmers and ranchers are committed to feeding America’s families while protecting the resources they’ve been entrusted with. We’re doing this through voluntary, market-driven incentives, but this proposed rule threatens that progress.

 

“Family farms don’t have teams of compliance officers and attorneys to respond to Wall Street. Higher costs could keep small farms from doing business with publicly traded companies, which could lead to more consolidation and fewer farmers at a time when the world is increasingly calling on rural America to meet the needs of hungry families.”

 

Recommendations to the SEC include:

 

o   Removing the “value-chain” concept from the proposed rules;

o   Removing or substantially revising the Scope 3 emissions disclosure requirement to include an explicit exemption for the agricultural industry;

o   Removing the requirement that registrants provide disclosures pertaining to their climate-related targets and goals;

o   Revising the proposed rules so that disclosures of GHG emissions operate in unison with existing federal emissions reporting programs;

o   Ensuring the final rules do not include location data disclosures for GHG emissions, which may inadvertently disclose the private information of family farms.

 

Read the full comments here:

https://www.fb.org/files/National_Ag_Associations_-_Comment_Letter_re_SEC_Proposed_Rules_on_Climate-related_Risks_-_File_Number_S7-10-22.pdf

 

Contact:

Mike Tomko

Director, Communications

(202) 406-3642

[email protected]

 

Bailey Corwine

Media Relations Specialist

(202) 406-3643

[email protected]

 

source url

https://www.fb.org/newsroom/proposed-sec-rule-requirements-nearly-impossible-for-family-farms