Exclusion of scope 3 emissions from SEC disclosure rule is a victory for private equity firms

The Private Equity Stakeholder Project criticizes the SEC for removing scope 3 emissions requirements from its climate disclosure rule, asserting that this allows publicly-listed private equity firms to significantly underreport their carbon footprints and obscure risks associated with fossil fuel portfolios.

• The SEC's final climate disclosure rule removes requirements for public companies to disclose scope 3 emissions and has reduced the reporting requirements for scope 1 and scope 2 emissions.
• The exclusion of scope 3 reporting is viewed as a victory for major publicly-listed private equity firms, including Blackstone, KKR, The Carlyle Group, Apollo, and Brookfield, as it enables them to report lower emissions while maintaining investments in polluting assets.
• A 2022 Private Equity Climate Risks (PECR) scorecard indicated that 10 of the largest private equity firms in North America held at least 80% of their energy portfolios in fossil fuels.
• Analysis shows a massive discrepancy between self-reported emissions and estimated actual emissions for specific firms: The Carlyle Group reported 10,903 metric tons (MT) CO2e in 2021 while estimates suggest 62 million MT CO2e, and Brookfield's estimated emissions of nearly 159 million MT CO2e are 14 times higher than its disclosed 11.8 million MT CO2e.

APA

Noble, C. (2024). Exclusion of scope 3 emissions from SEC disclosure rule is a victory for private equity firms. Private Equity Stakeholder Project. https://pestakeholder.org/news/exclusion-of-scope-3-emissions-from-sec-disclosure-rule-is-a-victory-for-private-equity-firms/

Chicago

Noble, Chris. Exclusion of scope 3 emissions from SEC disclosure rule is a victory for private equity firms. Private Equity Stakeholder Project, 2024. https://pestakeholder.org/news/exclusion-of-scope-3-emissions-from-sec-disclosure-rule-is-a-victory-for-private-equity-firms/.

Wikipedia

{{cite press release |last1=Noble |first1=Chris |title=Exclusion of scope 3 emissions from SEC disclosure rule is a victory for private equity firms |publisher=Private Equity Stakeholder Project |date=6 March 2024 |url=https://pestakeholder.org/news/exclusion-of-scope-3-emissions-from-sec-disclosure-rule-is-a-victory-for-private-equity-firms/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{noble2024exclusion, author = {Noble, Chris}, title = {{Exclusion of scope 3 emissions from SEC disclosure rule is a victory for private equity firms}}, publisher = {Private Equity Stakeholder Project}, year = {2024}, month = mar, url = {https://pestakeholder.org/news/exclusion-of-scope-3-emissions-from-sec-disclosure-rule-is-a-victory-for-private-equity-firms/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }