SEC Pauses Implementation of Climate Disclosure Rule Amid Legal Challenge

Thursday, 4 April 2024, 20:36
The U.S. Securities and Exchange Commission (SEC) has decided to pause the implementation of its final rule that mandates companies to disclose climate-related risks due to an ongoing court challenge led by GOP states. The SEC clarified that the stay is a temporary measure and affirmed its commitment to uphold the rule against legal scrutiny. The rule, aimed at enhancing transparency regarding climate risks, is facing resistance from Republican attorneys general, while a group of Democratic counterparts has intervened in its defense.
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SEC Pauses Implementation of Climate Disclosure Rule Amid Legal Challenge

SEC Pauses Climate Disclosure Rule Pending Court Challenge

The U.S. Securities and Exchange Commission (SEC) on Thursday announced it will stay implementation of its final rule requiring companies to disclose their climate-related risks pending the results of a legal challenge from GOP-led states.

Rule Validity Under Question

The SEC stated that the stay does not signify abandonment of the rule, emphasizing its determination to defend the rule against a court challenge from Republican attorneys general.

  • Final Rule Details
  • Legal Challenges Overview
  • Intervention of Democratic Attorneys General

The lawsuit against the rule has drawn involvement from multiple GOP-led states, indicating a polarized stance on climate disclosure regulations.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

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