The SEC announced the release and adoption of the new rules in early March, two years after the Commission issued its initial draft, which for the first time established requirements for public companies in the United States to provide disclosure about the climate risks their business faces as well as plans to address those risks.
However, even before final issuance, the new rule faced a series of legal challenges. According to a new Bloomberg Law survey, a majority of lawyers predict the U.S. Securities and Exchange Commission's (SEC) new Climate Disclosure Rule will not survive current legal challenges. Most predict this rule will only be partially retained or completely changed.
Survey respondents highlighted the areas of the SEC's Climate Rule where they expect to face the most significant regulatory challenges. Of these, the biggest challenge is expected to be for greenhouse gas (GHG) emissions disclosure at 37%, followed by climate-related targets and plans at 36%.