SEC Climate Disclosure Rule Faces Legal Challenges from Both Sides

Conservative attorneys general and environmental groups file lawsuits against the SEC, highlighting the contentious nature of the new climate disclosure requirements.

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.