Experts: Legal noise around SEC climate disclosure rule no excuse for standing still
By 
Aaron Nicodemus2024-03-20T16:03:00
Legal experts are advising their public company clients to move forward with plans to comply with the Securities and Exchange Commission’s (SEC) climate-related disclosure rule, despite lawsuits and other challenges being brought against the controversial policy in the aftermath of its approval.
“We think it’s a better approach to prepare for the rule to take effect,” said Megan Gates, partner at law firm Covington. “It’s not a great approach to wait and see, if that means not doing anything.”
Almost immediately after the SEC passed the rule by a 3-2 vote on March 6, the blowback began. A total of 22 state attorneys general filed lawsuits in three federal courts, according to a report from Bloomberg Law, while business interest groups led by the U.S. Chamber of Commerce also filed a lawsuit.
THIS IS MEMBERS-ONLY CONTENT
You are not logged in and do not have access to members-only content.
If you are already a registered user or a member, SIGN IN now.
Related articles
-
ArticleSEC gets ball rolling on ending quarterly reporting, as investors urge caution
Disclosure requirements for public companies have ballooned over the decades and need to be reigned in, the three members of the Securities and Exchange Commission (SEC), said Thursday.
-
News BriefSEC dodges commitment on climate rule enforcement
The SEC refused to say whether it would enforce its landmark Climate-Related Disclosure Rules in a status report filed Wednesday, deepening uncertainty as the regulation faces legal challenges.
-
PremiumECHR ruling opens door to climate change litigation on basis of human rights
By holding the Swiss government accountable for failing to do more to limit climate change, a ruling by the European Court of Human Rights might have significant implications for legislators and organizations in other countries across the European Union.
More from Regulatory Policy
-
ArticleCompliance must focus on corruption as EU and U.K. seek to tackle rising risks
Corruption isn’t something that happens somewhere else, in other countries and committed by other people. Nowhere is corruption-proof, and new rules being introduced in the EU and the U.K. aim to focus compliance officers on the full gamut of risks in all jurisdictions and every sector.
-
ArticleEmployment law in the age of AI: Compliance considerations
Employment law in the age of AI is evolving faster than many companies can keep pace. As more states enact AI laws and as more case law piles on, chief compliance officers and in-house counsel must ensure that compliance policies and procedures evolve as AI legal and compliance risks evolve.
-
ArticleCompliance must future-proof AI projects to meet evolving regulations
AI implementations are surging, but many new systems are being abandoned after companies have invested in expensive projects. Now evolving AI regulation is adding to the list of reasons why new systems may fail. Compliance must watch emerging regulatory developments and ensure that any new AI tools are capable of ...