SEC's New Climate Disclosure Rules Facing Multiple Lawsuits from sierra skye Watch Video

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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.