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Climate data companies await SEC disclosure rule

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Illustration: Tiffany Herring/Axios

Climate data companies say the Securities and Exchange Commission's final climate disclosure rule will offer much-needed certainty and will accelerate demand for their products.

Why it matters: The expected ruling Wednesday will be the latest global mandate requiring companies to disclose greenhouse gas emissions.

Catch up quick: The SEC first put out its climate disclosure draft almost two years ago.

  • All publicly traded companies in the U.S. will be subject to the required emissions disclosures that the SEC finalizes.

Zoom in: One group of companies that welcomes the ruling are climate data firms such as Persefoni, whose software helps track emissions data.

Yes, but: A key global emissions metric is expected to be removed from the final draft.

  • Reuters reported in February that the SEC would scrap a requirement to disclose Scope 3 data, a metric that includes a wide range of indirect emissions, from a company's supply chains to users of their products.

Between the lines: Even if Scope 3 does end up on the cutting floor, data firms say companies are already using it to track emissions on their own.

  • "The train has left the station," says Matt Fisher, head of policy for Watershed, a climate data startup.
  • Executives from two other climate data firms, Optera and Pulsora, told Axios that companies will continue to track Scope 3 data for competitive reasons and for their investors.

Big picture: Climate tech executives also say the ruling will bring much-needed certainty to the market.

What's next: The SEC is expected to issue the final ruling Wednesday and the commissioners will vote on it.

  • Expect immediate legal challenges.
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