Daily Management Review

Apple Wants US SEC To Make Very Specific Emission Disclosure Rules


Apple Wants US SEC To Make Very Specific Emission Disclosure Rules
Apple wants the Securities and Exchange Commission (SEC) of the United States to make it mandatory for companies to disclose emissions made during their business processes including those that is generated from their "value chain," said a Tweet from Lisa Jackson, Vice President of Apple.
Veena Ramani, senior program director for Ceres, a Boston-based climate advocacy group, said that these comments from Apple is amongst the first ones from a large company to date that make very specific recommendations and suggestions about the exact nature and elements of emission disclosures that should be made mandatory for companies to disclose.
Last month the SEC had said that it would request companies to provide inputs about how firms should be reporting on their greenhouse gas emissions and on other climate issues.
In recent years, there has been increasing interest and investment by investors into funds that make use of environmental, social and governance factors for choosing which stocks to invest in. However at the same time, it has been difficult to make comparison between companies on the basis of the emission made by them and their business operations because of a general lack of standards for emissions and other environment disclosures that is followed by all companies.
Apple's Jackson, a former US environmental regulator, in her Tweet that it is the belief of Apple that rules should be issued by the SEC that makes it mandatory for companies to make emission and other environment related disclosures after being audited by third parties for the market, investors, the government and the public. She said that apple also believes that such disclosures should cover all scopes of emissions – be it the direct ones or the and indirect sources of emission as well as the emission generated by the companies operating in the value chain of a company.
Apple’s suggestions to make it mandatory for publication of emission data from the "value chain" of companies – which is mostly referred to the so-called Scope 3 emissions that result from the use of a products of companies that are made by other parties, however could be a controversial issue.
While disclosing emissions being generated by its Scope 3 functions for the first time, the energy company ExxonMobil noted that the data "is less certain and less consistent because it includes the indirect emissions resulting from the consumption and use of a company's products occurring outside of its control."