By Andi Anderson
The Securities and Exchange Commission (SEC) has delivered a victory for Ohio farmers by excluding them from Wall Street climate reporting rules. In response to concerns raised by the American Farm Bureau Federation (AFBF) and Ohio Farm Bureau (OFBF), the SEC voted to remove the Scope 3 reporting requirement from its final climate disclosure rule.
The Scope 3 reporting requirement would have obligated public companies to report greenhouse gas emissions from their supply chain. However, acknowledging the impracticality and financial burden this would impose on small and mid-sized farmers, the SEC decided to exempt family farms.
Adam Sharp, executive vice president of Ohio Farm Bureau, expressed gratitude for the SEC's consideration of the impact Scope 3 reporting would have had on Ohio farmers. He highlighted the rule's potential burden on small farms, requiring climate data reporting at the local level.
AFBF and OFBF led a nationwide effort over the past two years to oppose the Scope 3 reporting requirement. Farm Bureau members sent nearly 20,000 messages to the SEC and Capitol Hill, emphasizing the challenges family farms would face in complying with such regulations.
AFBF President Zippy Duvall thanked SEC Chair Gary Gensler and his staff for recognizing the unintended consequences of Scope 3 reporting. While farmers remain committed to climate-smart agriculture, the proposed rule's stringent requirements could have forced small farms out of the supply chain.
Farm Bureau advocates responsible data collection and supports initiatives like the Ecosystem Services Market Consortium and Field to Market. However, the Scope 3 requirement would have placed undue burdens on farmers, potentially jeopardizing small, family-owned farms.
AFBF now urges California to follow the SEC's lead and withdraw its Scope 3 reporting requirement for businesses operating in the state. Farm Bureau, alongside the U.S. Chamber of Commerce and others, has challenged the state law and its potential national implications.
Ohio Farm Bureau continues its mission to work together for Ohio farmers, advancing agriculture, and strengthening communities.
Photo Credit: Ohio Farm Bureau
Categories: Ohio, Government & Policy