Overview

• The SEC's new climate disclosure rule, requiring companies to disclose their climate impacts, faces legal challenges from both conservative state attorneys general and environmental groups.
• Conservative state attorneys general argue the rule imposes undue burdens on businesses, while environmental groups, led by the Sierra Club, claim it doesn't go far enough.
• The rule mandates disclosure of direct greenhouse gas emissions and climate risks, but has been criticized for not including Scope 3 emissions.
• Investors and companies have shown increasing interest in climate disclosures, despite the legal pushback and the SEC's adjustments to the rule.
• The legal battles over the SEC's climate disclosure rule highlight the growing tension between regulatory efforts to address climate change and concerns over economic impact and legal authority.