Why the SEC Will Look For Carbon Footprints

Corporate GHG Emissions

As the chief regulator of the securities industry, the SEC is working on a climate change draft. The basic premise is that investors need to know standardized and accurate facts about a company’s exposure to climate change. But it’s not so easy to know what listed companies need to disclose and where they can be accurate.

  • The largest one, Scope 3, reaches far beyond the firm to its customers and suppliers.
  • Meanwhile, Scope 2 sticks with the company but includes the GHG it creates through, for example, the electricity it uses.

Our Bottom Line: The SEC

Responding to conflicts of interest, inaccuracies, and fraud, the U.S. Congress created a securities industry watchdog in 1934. Since then, the SEC (Securities and Exchange Commission) has guaranteed that financial disclosure documents would say what investors needed to know and could depend on.



Located at the intersection of current events, history, and economics, econlife® slices away all of the layers that make economics boring and complex.

Love podcasts or audiobooks? Learn on the go with our new app.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store