As data centers increasingly consume both energy and water, the SEC is expected to implement a rule that will require companies to detail climate-related risks and emissions data, including any reduction plans or targets.
Michael Littenberg, partner and global head of Ropes & Gray’s ESG, CSR and Business and Human Rights practice told Law.com, “to the extent to which tech companies will have to disclose greenhouse gas emissions or other metrics related to data centers is a little bit of a question mark, but it certainly will put more of a spotlight on energy usage and greenhouse gas emissions by data centers and put pressure on them to either take additional substantive steps to reduce those emissions and energy usage or at least disclose their plans to do so.”
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