WASHINGTON, D.C. – Today, House Budget Committee Chairman Jodey Arrington (TX-19) responded to the SEC's Climate Disclosure Rule, expressing satisfaction with the exclusion of burdensome Scope 3 reporting requirements. In a statement, Arrington highlighted the implications of the decision, particularly for farmers and ranchers who would have been affected by the additional reporting obligations.
Arrington emphasized, "Late last week, the SEC released its final climate disclosure rule - WITHOUT burdensome Scope 3 reporting requirements. This scaled-back rule is a big win for our farmers and ranchers who would have been forced to tediously track greenhouse gas emissions from their supply chains if Scope 3 had been implemented."
The SEC's recently adopted rules on climate-related information disclosure distinguish between Scope 1 and Scope 2 emissions. Scope 1 pertains to emissions from sources directly owned or controlled by an organization, while Scope 2 covers indirect emissions resulting from the energy purchased and used by a company. Notably, Scope 3, which would have necessitated disclosure of emissions by other indirect entities along the supply chain, was eliminated from the original proposal.
Arrington further remarked, “Our farmers and ranchers have experienced firsthand the challenges created by Biden's radical environmental agenda. From WOTUS and the outdated Endangered Species Act to skyrocketing input costs, our ag industry is fighting an uphill battle to provide food security to Americans and meet the growing global demand for ag products grown in the USA.”
The exclusion of Scope 3 reporting requirements in the SEC's Climate Disclosure Rule has been viewed as a positive development for the agricultural sector, relieving farmers and ranchers of potential regulatory burdens associated with tracking greenhouse gas emissions in their supply chains.
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