SEC's New , Climate Disclosure Rules , Facing Multiple Lawsuits.<br />'Newsweek' reports that both industry and <br />environmental groups have legally challenged the <br />Securities and Exchange Commission over new rules. .<br />The new rules require some businesses to disclose <br />information about climate risks, including direct <br />greenhouse gas emissions and risks from extreme weather.<br />The SEC rules, which were approved on March 6 by a 3-2 vote, <br />also require companies to provide investors with context <br />on how those companies plan on managing those risks.<br />Some requirements were pared back prior to the rules <br />being approved. Those rules include reporting on Scope 3 <br />emissions which relate to the company's supply chain.<br />In response to the new rules, two fossil fuel producing <br />companies filed lawsuits accusing the SEC of burdening <br />companies and exposing them to potential litigation.<br />19 state attorney generals have also <br />filed lawsuits claiming that the new rules <br />exceed the SEC's legal authority.<br />On the other side, environmental groups the Sierra Club <br />Foundation and Earthjustice announced their own lawsuits <br />accusing the SEC of watering down rules to protect investors.<br />Sierra Club has millions of members <br />and supporters who have investments <br />in the market. It's really critical that <br />we have access to information about <br />climate risks that may be faced <br />by the kinds of entities that<br />we would hope to invest in, Andres Restrepo, Sierra Club Senior Attorney, via Newsweek.<br />'Newsweek' reports that the SEC rules were <br />meant to take effect in 2026, however, the <br />legal challenges are likely to result in delays.<br />The new rules come as the U.S. Supreme Court <br />has indicated plans to restrict the regulatory <br />authority of environmental enforcement agencies.
