Schiff Introduces SCOPE Act to Incentivize Comprehensive Disclosures of Emissions Across All Industries

August 06, 2024

Washington, D.C.- Today, Representative Adam Schiff (D-Calif.) introduced the Standardized Calculation of Operational Polluting Emissions (SCOPE) Act to direct the Environmental Protection Agency (EPA) to establish voluntary guidance for companies to disclose their indirect Scope 3 emissions, ensuring greater and uniform transparency for the public and consumers about a company's environmental footprint.

As more and more companies are committing to internal "green" emissions disclosure goals, it is critical to provide guidance on exactly how to calculate and report those emissions. By directing the EPA to provide official guidance for Scope 3 emissions from direct emitter companies, these companies will not be left to determine their own methodologies for calculating and disclosing their indirect emissions.

"As climate change increasingly affects our communities, it is essential that companies be transparent with the public about their full environmental impact, and work to improve it," said Rep. Schiff. "My SCOPE Act will close a clear gap by directing the EPA to establish across-the-board guidance for companies that choose to disclose their Scope 3 emissions."

"The Sierra Club strongly supports the SCOPE Act. By directing the EPA to study and publish voluntary guidance on calculating Scope 3 emissions for companies that qualify as 'direct emitters,' this legislation will help ensure our federal government finally has a window into the financial industry's contribution to fossil fuel pollution and can begin addressing it. Fossil-free finance is essential to a sustainable financial system and protecting our communities from the ravages of climate change," said Patrick Drupp, PhD, Director of Climate Policy, The Sierra Club.

"Scope 3 emissions often make up over 80% of the greenhouse gas pollution the largest corporations are responsible for," said David Shadburn, Senior Government Affairs Advocate, League of Conservation Voters. "With more and more direct emitting companies committing to emissions reductions, consumers still lack consistent, comparable information to measure companies' progress in this critical category. The SCOPE Act would incentivize more companies to provide standardized disclosures of their emissions up and down the value chain. We applaud Representative Schiff for introducing this important legislation."

"As we work together to reduce pollution and the connected catastrophic impacts of climate change like extreme heat, drought, fires, and flooding, it is imperative that the public have the necessary information to understand the indirect environmental impact made by companies and their businesses practices. We're proud to support Rep. Schiff's important legislation that will hold corporate polluters accountable and keep our communities safe and healthy," said Aaron McCall, Federal Advocacy Coordinator, California Environmental Voters.

"Understanding the full picture of a company's climate pollution is critical if we are to create no additional warming and a safer climate. Rep. Schiff's SCOPE Act would ensure that the EPA carries out its legal responsibility to provide thorough direction for calculating and reporting emissions caused by all of a company's suppliers, travel, investments and product. This would build upon and complement existing voluntary and international guidance. EDF applauds Rep. Schiff's leadership on this issue," said Joanna Slaney, Associate Vice President for Political Affairs, Environmental Defense Fund.

"Climate change is already hurting people's health, wildlife and finances both in California and around the world. It's thus good news that many companies are now working to reduce global warming pollution, but it's important to know how much progress we're making and what still needs to be done to ensure a livable future for our kids and grandkids. Rep. Schiff's SCOPE Act would be an important contribution to these efforts by creating voluntary guidelines for calculating and reporting emissions, which is why Environment America is lending our support," said Lisa Frank, Executive Director, Environment America.

Scope 3 emissions are the result of activities of a company that occur from sources not owned or controlled by the company. This may include extraction and production of purchased materials; transportation of purchased fuels; and use of sold products and services up or downstream from the company's supply chain.

Schiff's SCOPE Act is cosponsored by Representatives Jerrold Nadler (D-N.Y.), Jared Huffman (D-Calif.), Kevin Mullin (D-Calif.), and Eleanor Holmes Norton (D-D.C.).

The bill is also supported by Environment America, Environment California, Environmental Defense Fund, California Environmental Voters, League of Conservation Voters, Natural Resources Defense Council (NRDC), and Sierra Club.

Read the full bill text here.

Schiff has previously advocated to the SEC that public companies disclose all emissions throughout their supply chain in a letter with Rep. Vargas. The letter came in response to California's legislature passing the Climate Corporate Data Accountability Act (SB 253), which mandates companies with annual revenues over $1 billion to publicly report greenhouse gas emissions that come from their operations and electricity use, and eventually, pollution generated by their supply chains and customers.

Recently, Schiff also announced a transformational Climate Pollution Reduction Grant funded by the Inflation Reduction Act, aimed at implementing community-driven solutions that tackle the climate crisis, reduce air pollution, advance environmental justice, and accelerate America's clean energy transition.

###

Public link

Please use the above public link if you want to share this noodl on another website.