SEC Set to Vote on Climate Disclosure Rule Amid Controversy

The rule, aimed at enhancing transparency on climate risks, faces opposition and potential legal challenges.

SEC Chair Gary Gensler will hold a vote on a rule requiring companies to disclose climate risks, sparking debate over its scope and impact.
The proposal, first introduced in March 2022, has received a record number of comments, indicating strong opinions on both sides.
Scope 3 emissions disclosure, a contentious point, may be dropped from the final rule due to corporate pushback.
Experts argue that enhanced climate disclosures are crucial for investors to assess company values in a warming world.
Legal challenges are anticipated, with opponents citing government overreach and the potential for increased litigation and costs for companies.