Labels like “carbon neutral” and “climate positive” can make it seem like some brands have climate action all figured out. But anyone who tries to look behind the curtain at what companies are actually doing to cut emissions will find a more complicated reality. There are no standards for how companies should account for or report their emissions, making comparing one company or product to another nearly impossible.
The Biden administration is on the verge of issuing a pivotal rule that could address this issue. In March, the Securities and Exchange Commission, or SEC, the federal agency that ensures that publicly traded companies are not misleading investors, proposed new requirements for “climate-related disclosure.”
The rule would force companies to disclose how climate-related risks could affect their business in filings to the SEC. Companies would also have to provide standardized emissions data and list any plans to cut emissions or otherwise transition their business strategy in response to climate change. An extended public comment period for the rule closed on Friday, and the SEC will now review the comments before issuing a final rule in the ... Read more
