TLDR:
- The Fifth Circuit U.S. Court of Appeals has temporarily blocked the enforcement of the U.S. SEC’s new climate disclosure rule.
- The SEC’s rule required U.S. public companies to disclose climate-related risks, but faced legal challenges and criticism for not going far enough.
The Fifth Circuit U.S. Court of Appeals has temporarily halted the enforcement of the U.S. SEC new climate-related disclosure rule. The rule, which aimed to integrate climate risk into corporate reporting, required U.S. public companies to disclose climate-related risks, their plans to address these risks, the financial implications of severe weather events, and their greenhouse gas emissions. However, the final rule exempted reporting on certain emissions and faced criticism both for being too demanding and for not going far enough.
Legal challenges from companies like Liberty Energy and Nomad Proppant, as well as criticism from environmental groups and investors, have highlighted the controversy surrounding the rule. Political opposition has also arisen, with Congressional Republicans accusing the SEC of overstepping its authority. Despite the challenges, the SEC remains committed to defending the rule. The temporary pause on the rule’s enforcement underscores the complex interplay between environmental policy, corporate governance, and economic implications of climate change mitigation efforts.
