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Climate Disclosure in Retreat

Abatify Summary

Nature & Climate Perspective

**The regulatory retreat on GHG emissions reporting obscuring corporate value chains directly threatens ecosystem stability by decoupling corporate financial performance from localized ecological degradation. **

  • The absence of standardized Scope 3 disclosures limits the ability to track and mitigate indirect corporate impacts on global LULUCF (Land Use, Land-Use Change, and Forestry) activities.
  • Without robust disclosure frameworks, capital allocation toward Blue Carbon and biodiversity preservation initiatives is deprioritized due to a lack of verifiable corporate climate accountability.
  • Fragmented ecological monitoring reduces the long-term viability of voluntary carbon markets that rely on baseline regional environmental data for additionality assessment.

Market & Policy Outlook

**A rollback in federal and state climate disclosure rules creates systemic market fragmentation, directly undermining the transparency goals championed by the ICVCM Core Carbon Principles (CCPs). **

  • The SEC's proposal to rescind corporate climate disclosures undermines international convergence on transition risk, complicating alignment with Article 6.2 and Article 6.4 accounting frameworks.
  • Corporate commitments to the Science Based Targets initiative (SBTi) face compliance headwinds as the lack of regulatory mandates reduces the standardization of high-quality greenhouse gas inventory data.
  • Market liquidity for ESG-linked financial instruments may decrease as investors struggle to acquire high-fidelity Scope 1, 2, and 3 data, stalling systemic capital reallocation.
At every level of government, greenhouse gas (GHG) emissions disclosure regulations that saw meaningful progress only a few years ago are now in retreat. Last week, the Securities and Exchange Commission (SEC) proposed rescinding its 2024 corporate climate-disclosure rule, and New York Governor Kathy Hochul persuaded legislators to weaken the state’s landmark climate law, the […]
At every level of government, greenhouse gas (GHG) emissions disclosure regulations that saw meaningful progress only a few years ago are now in retreat. Last week, the Securities and Exchange Commission (SEC) proposed rescinding its 2024 corporate climate-disclosure rule, and New York Governor Kathy Hochul persuaded legislators to weaken the state’s landmark climate law, the […]

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Scope 3SBTiICVCM CCPsLULUCFArticle 6.2

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