Supply Chain Council of European Union |

Supply Chain Implications Of SEC’s Climate Proposal

By Reagan Demas and Maria Piontkovska (April 14, 2022, 2:08 PM EDT) — The U.S. Securities and Exchange Commission’s recently released, and long-awaited, proposed rule changes that will require disclosure of climate-related risks are likely to have significant supply chain implications.

The proposed rule would require listed companies to disclose information on climate-related risks and greenhouse gas, or GHG, emissions. Both of these disclosure categories include data related to corporate supply chains, and thus the proposed rule would essentially require public companies to obtain and analyze climate risks and climate impact data related to its upstream and downstream suppliers.

Climate-Related Risk Disclosure — the Extended Enterprise, Including Supply Chains

The proposed rule broadly defines…

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