Some corporations will soon have to step up their carbon footprint reporting after the U.S. Securities and Exchange Commission on Wednesday passed a climate-change disclosure rule.

The regulation, which was under consideration for two years, will require certain public companies to disclose information to investors about their direct greenhouse gas emissions and those created by the energy they consume.

Notably, the SEC made two significant changes that will frustrate environmentalists but gave wins to businesses and others opposed to disclosures related to climate change.

The Democratic-led commission dropped so-called Scope 3 emissions reporting that would have required the disclosure of indirect emissions from companies’ supply chains and customers, such as the footprint of farmers whom banks lend to or the gasoline used to transport products.

In addition, the reporting of direct emissions and those from energy usage — known as Scope 1 and 2 emissions — will be at the discretion of the companies themselves. Only those that determine such information is vital enough to be deemed “material” for investors will need to report it. Smaller companies will be exempt.

The SEC estimates about 2,800 U.S.-based companies will need to make the disclosures along with more than 500 foreign-based companies doing business in the U.S.

The rule passed the five-member commission 3-2 but created strange bedfellows among the panels’ three Democrats and two Republicans. Commissioner Mark Uyeda, a Biden appointee, and Commissioner Caroline Crenshaw, a Trump appointee, both crossed party lines on their vote.

• Ramsey Touchberry can be reached at rtouchberry@washingtontimes.com.