"The Securities and Exchange Commission’s proposal to require publicly listed companies to disclose their climate-related risks has unleashed pushback from critics who say the agency is overstepping its bounds.
But in recent weeks the debate has intensified around one issue in particular: the extent to which the SEC’s draft climate disclosure rules would affect smaller businesses that are embedded in public companies’ supply chains — but aren’t actually regulated by the SEC.
It’s a concern increasingly highlighted by business groups, Republican lawmakers and conservative organizations in response to the SEC’s move, which was first unveiled in March.
Since then, opponents have argued in comment letters to the SEC and other forums that, as currently written, the proposal would compel publicly listed companies to demand greenhouse gas data or other related information from their suppliers. That in turn, they argue, could have a major impact on companies such as small family farms that likely do not have the resources necessary to comply."
Avery Ellfeldt reports for E&E News June 2, 2022.
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