February ’23 at-a-glance … regulations
Required reporting of Scope 3 indirect emissions undergoing debate
NAFEM joined 53 other manufacturer organizations in requesting that Congress work with the U.S. Securities and Exchange Commission (SEC) to make the agency’s proposed climate disclosure rules more workable for manufacturers. SEC’s final rule is expected in April. According to a recent report from NAFEM’s legal team at Barnes & Thornburg, one of the more consequential issues is whether the SEC will include disclosure of Scope 3 emissions in the final rule. These are indirect greenhouse gas (GHG) emissions that occur all along a company’s supply chain. While Democrats and Republicans disagree on whether to include Scope 3 emissions, globally there has been consistent support for Scope 3 emission disclosure requirements starting in the U.K. and EU. Later this year, a number of countries are expected to adopt the initial International Sustainability Standards Board (ISSB) standards, that currently include disclosure of Scope 3 emissions, when they are released later this year.
Business priorities for the 117th Congress
Two organizations that advocate for the needs of businesses with the federal government announced their 2023 legislative priorities.
The Small Business Legislative Council (SBLC) Small Business Legislative Council (SBLC), a coalition of trade and professional associations that share a common concern for small business, intends to emphasize:
- Simplifying and making the 199A deduction permanent and restoring the research and development deduction.
- Maintaining a high estate tax exemption to protect privately owned and small businesses when they are passed down to future generations.
- Investing in infrastructure.
- Tackling supply chain issues.
- Addressing the labor shortage.
- Promoting workforce development.
- Continuing to oppose “intrusive and burdensome legislation and regulations.”
The U.S. Chamber of Commerce also plans to focus on infrastructure, pro-growth tax provisions and the labor shortage. It further identified:
- Expanding legal immigration and securing the southern U.S. border.
- Opening markets to America exports.
- Growing investment opportunities in the U.S.
As a member of both organizations, NAFEM will work with SBLC and the U.S. Chamber to advocate for issues important to members.