Disclose your Scope 3 emissions, you cowards

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If you want to know which companies are serious about addressing their carbon emissions and which aren't, take a look at the public comments submitted to the US Securities and Exchange Commission.

It's possible to tell if a company is serious about its stance on Scope 3 emissions. Scope 3 emissions can make up a large portion of a company's carbon footprint. leased office space, business travel, and end-of-life processing are some of the activities that can cause emissions. They might happen when a customer uses their product, like when they drive a gas-powered SUV.

If your company is serious about doing something about climate change, it should estimate its Scope 3 emissions. It shouldn't undermine attempts to make Scope 3 disclosures standard if it's making noise about being sustainable

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The comments on the SEC's site are interesting. Even with the safe harbor provisions the SEC is offering to limit liability, many companies have made it clear that they don't want to reveal their Scope 3 emissions. They say that they don't take climate change seriously enough to fully understand their own impact on it.

I don't cover many companies that take the same stance. I don't know why I'm singing these out. Walmart is the world's largest retail store. They're the first and third largest asset managers. ExxonMobil is the largest non-government owned oil company. Southwest is one of the largest airlines in the U.S., no matter which measure you use.

Demur and delay

Companies complain that the data is unreliable or uncertain, that it is hard to obtain or that it will expose them to lawsuits when it is disclosed.

The first smell is reminiscent of a classic FUD campaign. There are no current standards to ensure consistent and comparable data when it comes to Scope 3 data.