Climate Reporting Regulations by the SEC Solidify Establishment for Carbon Measurement Startups
The SEC voted on Wednesday to require public companies to report a portion of their greenhouse gas emissions and their exposure to risks from climate change.
While the new rules do not apply to privately held companies like startups, they do create opportunities for those focused on the carbon tracking, accounting, and management space.
Some, like Amazon, Vanguard, Ralph Lauren, and Chevron, supported Scope 3 disclosures; already, many public and private companies voluntarily track those emissions.
In recent years, a number of startups have turned to AI to automate and improve Scope 3 estimates.
In adopting the new rules, the SEC is playing catch-up with other large economies, including China and the EU, which both have greenhouse gas reporting requirements.
