EU Could Waive Sustainability Disclosures for US Firms if SEC Rules Include Scope 3 Emissions

Proposed SEC climate change risk disclosures could qualify U.S. companies for a waiver from compliance with the EU corporate sustainability reporting requirements that were adopted by the EU in December 2022. The deciding factor may be the reporting of scope 3 emissions, those that are associated with the value chain—both suppliers and end-users—of a company’s product or services. EU officials have said that if the final SEC rule doesn’t include Scope 3 reporting requirements, the EU would be “unlikely to treat the U.S. disclosure regime as equivalent to its own.”

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