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SEC adopts climate disclosure rules, giving carbon accounting startups firm footing

The financial regulator won’t require publicly traded companies to report indirect emissions, but the rules help the U.S. catch up with its peers.

The SEC voted on Wednesday to require public companies to report a portion of their greenhouse gas emissions and their exposure to risks from climate change. In adopting the new rules, the SEC is playing catch-up with other large economies, including China and the EU, which both have greenhouse gas reporting requirements. While the new rules are significantly watered down from what was first proposed, they still represent a stake in the ground: Disclosures related to emissions and climate risk are going to become key data points for which investors can evaluate companies.

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