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The SEC said this week that it will suspend implementation of its new climate disclosure rule while it fights in court over the measure’s legality, as the agency pushes to consolidate legal challenges that have already been filed in an attempt to turn it over.
More than 20 Republican-led states and various business groups have filed lawsuits seeking to overturn the rule, arguing that the disclosure requirements go beyond the SEC’s legal authority.
The SEC said it still believes the rule is lawful and within its power to order, but it wants to focus on defending the rule’s merits against legal challenges.
The agency recently weakened the rule, including requiring some companies to report Scope 3 emissions from their supply chains and from customers who use their products.
“We agree with the SEC’s decision to maintain this imperfect rule and not burden companies with significant compliance costs before courts can judge its legality,” said Ryan Meyers, general counsel at the American Petroleum Institute.
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