The Securities and Exchange Commission (SEC) responded to concerns from the farming community and removed the Scope 3 reporting requirement from its final climate disclosure rule. The rule, which would have mandated greenhouse gas emissions reporting for supply chains, prompted significant opposition from agricultural organizations due to potential privacy issues and financial strain on small farms. The finalized SEC rules also reduce reporting requirements for Scopes 1 and 2 emissions.
The American Farm Bureau Federation (AFBF) had led efforts to eliminate Scope 3 from the requirements, emphasizing its burden on farmers, and praised the decision Securities and Exchange Commission. AFBF is also encouraging California to withdraw its Scope 3 reporting requirement as the U.S. Chamber of Commerce and others have recently challenged the state law and its national implications. While being supported by farm groups, the SEC’s disclosure rule has received significant criticism from organizations like Friends of the Earth, Earthjustice, and the Sierra Club.
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Brian German
Ag News Director / AgNet West