How the SEC's Climate Rule Impacts CRE

After a long meeting, the SEC in a divided vote passed its long-expected greenhouse gas disclosure rule. While it changed “quite significantly” from the original more extensive form, as Anna Pinedo, a partner with law firm Mayer Brown, tells GlobeSt.com, there is still significant implications for CRE.

Perhaps the biggest simplification in the new version is the lack of demand for Scope 3 emissions, or those attributable to supply chains. Scope 1 emissions (directly generated by a company) and Scope 2 (created by electricity, heat, cooling, and other services the company uses) remain in place. They have to be material in nature.