The Securities and Exchange Commission may force companies to disclose climate risk. But, at what level? The SEC breaks down emissions into three categories (Scope 1, 2, & 3).
Scope 1 – emissions generated by the company
Scope 2 – emissions from the energy consumed, like electricity for example
Scope 3 – emissions generated by a company’s suppliers and customers
Scopes 1 & 2 hold companies responsibility for disclosing embodied energy (the sum of all the energy required to produce any material, goods or services – including the mining, manufacturing and transporting.)
Scope 3 seems to hold companies responsible for disclosing emissions from the use of their products.
Investors, consumers and the public deserve to know the risks.
https://www.npr.org/2022/03/20/1087495296/sec-climate-change-disclosure-risks-greenhouse-gas-emissions
