Date of Award
Spring 2023
Degree Name
Bachelor of Science (BS)
Advisor(s)
Kelly Ulto
Abstract
This thesis examines the challenges and implications of the proposed SEC rule requiring firms to report their greenhouse gas emissions across all supply chain levels, a response to increasing stakeholder demands for transparency in environmental impact. The rule, which aligns with the TCFD framework, aims to enhance transparency, comparability, and consistency in emission reporting but has faced significant criticism, particularly regarding the practicality of its implementation. Through a conceptual report and cost-benefit analysis, this research assesses the rule's feasibility, highlighting the substantial costs involved in data collection and reporting, especially for Scope 3 emissions, which are difficult and costly to verify. The findings suggest that while the rule could standardize emission disclosures and potentially reduce the cost of debt by improving disclosure quality, the high costs of compliance may outweigh these benefits. The study proposes modifications to the rule, such as extending the timeline for compliance and scaling back Scope 3 requirements, to reduce the burden on companies while maintaining the rule's integrity. These adjustments aim to balance the SEC's objectives with what is achievable for companies and auditors, setting a more practical path forward for sustainable business practices. This thesis contributes to the ongoing discourse on corporate responsibility and regulatory frameworks in sustainability, offering a grounded perspective on how to refine regulatory approaches to support both business practicality and environmental accountability.
Recommended Citation
Gloria, Sarah, "A Cost-Benefit Analysis of the SEC’s Environmental Disclosure Proposal and Its Effect on Businesses, Auditors, and Shareholders" (2023). Gabelli School of Business Honors Thesis Collection. 9.
https://research.library.fordham.edu/gabelli_thesis/9
