SEC Sets Up Climate Clash With Rule on Indirect Emissions (2)

A highly anticipated plan by the U.S. Securities and Exchange Commission on global warming will demand companies account for some pollution they don’t emit themselves, according to people with knowledge of the matter, setting up a major clash over the financial regulator’s role in environmental policy.

The SEC’s push to make companies disclose greenhouse gases that are generated by other firms in their supply chain or by customers using their products will be embraced by climate activists who have been counting on the commission to deliver a tough rule. Such emissions, known as scope 3, make up the bulk of ...