HomeCarbon NewsScope 3 Emissions Reductions Considered by SEC

Scope 3 Emissions Reductions Considered by SEC

Scope 3 carbon emissions are emissions that do not come directly from a company or assets they own. Nonetheless, those emissions are still emissions. Emissions that fall under this category include emissions from the transportation of the good or how a consumer uses the product. With all this information, the SEC is still considering whether to include these emissions when considering the carbon neutrality of companies.

The problem when considering indirect emissions into regulations is that they are usually the largest and hardest to detect. How can a company find out how consumers use their product? It requires a lot of assumptions into calculating final numbers, many of which are wrong.

The IPCC report that outlines the impending danger of climate change urges immediate action. The SEC mentioned that many companies offer voluntary disclosures regarding scope 1 and 2 emissions. They have also discussed with companies how to disclose indirect emissions. There is still nothing concrete about how companies should disclose their emissions yet.

Scope 3 emissions account for around 65-95% of a company’s total carbon output. In turn, indirect emissions, therefore, have the most potential for reductions. But scope 3 emissions should be released and open if there is to be any reduction of emissions to keep companies accountable.

Most Popular
LATEST CARBON NEWS

2024 is The Golden Era For Europe’s Renewable Energy: Here’s Why

In 2024, Europe's market for renewable power purchase agreements (PPAs) is poised for substantial growth. Moreover, major mergers and acquisitions (M&A) also happened in...

Audi and Alfa Romeo Take The Ride to Electrification

Amid the rapid adoption of electrification, electric cars are reshaping the automotive industry, promising enhanced performance, efficiency, and a cleaner future. This momentum is...

Is the EV Market’s Momentum Slowing?

Bloomberg Outlook 2024 According to the Bloomberg EV Outlook Report, the global electric vehicle (EV) market in 2024 shows varied progress across different regions and...

Microsoft Strikes 2 Record-Breaking Carbon Credit Deals

Microsoft has entered into a groundbreaking agreement with BTG Pactual Timberland Investment Group (TIG), committing to provide 8 million carbon removal credits, marking the...
CARBON INVESTOR EDUCATION

What Is COP28? Key Issues to Watch Out at 2023 Climate Summit

After a record-breaking year of devastating effects of climate change, from record wildfires in Greece and Canada to floods in Libya, the United Nations...

Climate Disclosure: New Corporate Standards for a Net Zero World

As part of the world’s continued efforts to combat climate change and transition towards net zero, one important piece of the puzzle is new...

Carbon Pricing: Understanding The Economics and Trends of Fighting Climate Change

As global temperatures continue to rise, the urgency surrounding climate policies has intensified, thrusting carbon pricing into the limelight of climate discussions. The race to...

The EU Corporate Sustainability Reporting Directive (CSRD): Key Things to Know

Companies operating in the European Union will have to deal with new non-financial and sustainability reporting requirements starting January 2024 with the EU's Corporate...