The U.S. Securities and Exchange Commission will vote next Wednesday on its long-awaited climate disclosure rule to mandate that public companies disclose direct and indirect greenhouse gas emissions, a coming regulation that has received much criticism and will likely face legal challenges once finalized. 

The SEC proposed its climate-disclosure rule in 2022, requiring companies to report any climate-related risks and disclose information on a company’s direct greenhouse gas emissions (Scope 1), its indirect gas emissions (Scope 2) and greenhouse gas emissions generated by other entities in the supply chain (Scope 3).