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✓ Published: 15-Mar-2024
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SEC's New , Climate Disclosure Rules , Facing Multiple Lawsuits.<br/>'Newsweek' reports that both industry and <br/>environmental groups have legally challenged the <br/>Securities and Exchange Commission over new rules. .<br/>The new rules require some businesses to disclose <br/>information about climate risks, including direct <br/>greenhouse gas emissions and risks from extreme weather.<br/>The SEC rules, which were approved on March 6 by a 3-2 vote, <br/>also require companies to provide investors with context <br/>on how those companies plan on managing those risks.<br/>Some requirements were pared back prior to the rules <br/>being approved. Those rules include reporting on Scope 3 <br/>emissions which relate to the company's supply chain.<br/>In response to the new rules, two fossil fuel producing <br/>companies filed lawsuits accusing the SEC of burdening <br/>companies and exposing them to potential litigation.<br/>19 state attorney generals have also <br/>filed lawsuits claiming that the new rules <br/>exceed the SEC's legal authority.<br/>On the other side, environmental groups the Sierra Club <br/>Foundation and Earthjustice announced their own lawsuits <br/>accusing the SEC of watering down rules to protect investors.<br/>Sierra Club has millions of members <br/>and supporters who have investments <br/>in the market. It's really critical that <br/>we have access to information about <br/>climate risks that may be faced <br/>by the kinds of entities that<br/>we would hope to invest in, Andres Restrepo, Sierra Club Senior Attorney, via Newsweek.<br/>'Newsweek' reports that the SEC rules were <br/>meant to take effect in 2026, however, the <br/>legal challenges are likely to result in delays.<br/>The new rules come as the U.S. Supreme Court <br/>has indicated plans to restrict the regulatory <br/>authority of environmental enforcement agencies.

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SEC&#39;s New , Climate Disclosure Rules , Facing Multiple Lawsuits.&#60;br/&#62;&#39;Newsweek&#39; reports that both industry and &#60;br/&#62;environmental groups have legally challenged the &#60;br/&#62;Securities and Exchange Commission over new rules. .&#60;br/&#62;The new rules require some businesses to disclose &#60;br/&#62;information about climate risks, including direct &#60;br/&#62;greenhouse gas emissions and risks from extreme weather.&#60;br/&#62;The SEC rules, which were approved on March 6 by a 3-2 vote, &#60;br/&#62;also require companies to provide investors with context &#60;br/&#62;on how those companies plan on managing those risks.&#60;br/&#62;Some requirements were pared back prior to the rules &#60;br/&#62;being approved. Those rules include reporting on Scope 3 &#60;br/&#62;emissions which relate to the company&#39;s supply chain.&#60;br/&#62;In response to the new rules, two fossil fuel producing &#60;br/&#62;companies filed lawsuits accusing the SEC of burdening &#60;br/&#62;companies and exposing them to potential litigation.&#60;br/&#62;19 state attorney generals have also &#60;br/&#62;filed lawsuits claiming that the new rules &#60;br/&#62;exceed the SEC&#39;s legal authority.&#60;br/&#62;On the other side, environmental groups the Sierra Club &#60;br/&#62;Foundation and Earthjustice announced their own lawsuits &#60;br/&#62;accusing the SEC of watering down rules to protect investors.&#60;br/&#62;Sierra Club has millions of members &#60;br/&#62;and supporters who have investments &#60;br/&#62;in the market. It&#39;s really critical that &#60;br/&#62;we have access to information about &#60;br/&#62;climate risks that may be faced &#60;br/&#62;by the kinds of entities that&#60;br/&#62;we would hope to invest in, Andres Restrepo, Sierra Club Senior Attorney, via Newsweek.&#60;br/&#62;&#39;Newsweek&#39; reports that the SEC rules were &#60;br/&#62;meant to take effect in 2026, however, the &#60;br/&#62;legal challenges are likely to result in delays.&#60;br/&#62;The new rules come as the U.S. Supreme Court &#60;br/&#62;has indicated plans to restrict the regulatory &#60;br/&#62;authority of environmental enforcement agencies.
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