A landmark climate disclosure rule adopted by the US Securities and Exchange Commission yesterday is already facing mounting legal and legislative challenges. Ten states filed suit yesterday shortly after the rule was finalized. Environmental advocates also say they’re considering challenging the rule. If implemented, the SEC’s new rule would force large, public companies to disclose risks they face due to climate change and share partial information about their greenhouse gas emissions.
“Investors should realize this overreach by the SEC will significantly hurt our economy while serving as boon for special interests and far-left activists,” Huizenga said in a statement yesterday. Many environmental activists, however, are also unhappy with the rule, saying it doesn’t go far enough to address climate-related risks. The most contentious piece is whether companies should have to divulge how much pollution they cause through their supply chains and the end-use of their products.