Coalition of States Challenge SEC Climate Disclosure Rule in Federal Court

Wednesday, 6 March 2024, 19:23
Nine states, led by West Virginia and Georgia, have filed a legal challenge against the new SEC climate disclosure rule, citing concerns over government overreach and potential adverse effects on businesses. The rule, approved by a narrow 3-2 vote, has faced backlash from business groups and Republicans, with threats of legal action to prevent its implementation. The contentious nature of the rule underscores the ongoing debate between regulatory agencies and the business community on environmental disclosure requirements.
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Coalition of States Challenge SEC Climate Disclosure Rule in Federal Court

Legal Challenge to SEC Climate Disclosure Rule

West Virginia Attorney General Patrick Morrisey announced a coalition of nine states will file a legal challenge to new regulations requiring public companies to disclose their climate-related risks and direct greenhouse gas emissions.

Controversial SEC Vote

The Securities and Exchange Commission (SEC) voted 3-2 to approve the climate disclosure rule, set to take effect in 2026, amidst strong opposition from business interests.

Backlash and Legal Threats

  • Business groups and politicians have criticized the rule, raising concerns about its impact on businesses and the economy.
  • Legal challenges and opposition from various quarters highlight the divisive nature of environmental 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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