Should companies report on their Scope 3 emissions?
I agree with BlackRock’s Larry Fink that investors shouldn’t act as the environmental police. It’s not their role. However, I find it troubling that the reason he says it is because he doesn’t seem to believe that companies need to be required to report on scope 3 emissions.
“I have no problem in doing scope 1 and 2. But we’ve always said scope 3 is forcing big companies, banks, and asset managers to be the environmental police. I’ve been loud about this and spoken about this in COP26. I’m against it,” he says in the interview.
Fink’s suggestion that it’s OK for companies to ignore for now scope 3 emissions, which for most companies represent the majority of their emissions, is like him saying he’s OK with financial reports that include operating expenses but ignore the cost of goods sold. It doesn’t make sense in both cases.