SEC Climate Plan Will Give Investors Dubious Data, Ex-Chair Says

An SEC proposal for corporate greenhouse gas emissions disclosures would provide company shareholders with questionable information to make investment decisions, former agency Chairman Jay Clayton said Monday.

The Securities and Exchange Commission’s plan would require companies to report metrics of uncertain accuracy and investor use, creating “cosmetic nonsense,” said Clayton, who served during the Trump administration. The disclosures would cover emissions from companies’ direct operations and electricity use, as well as from big businesses’ supply chains. Companies have raised concerns about the challenges of accurately reporting the emissions from their suppliers.

“If we throw these metrics out, maybe people will ...