The Securities and Exchange Commission unveiled and approved its final climate disclosure rule March 6, and — as experts predicted — legal challenges ensued almost immediately.
In total, the agency received nine petitions over the rule, originating in six different U.S. Appeals Court circuits.
All of those challenges have since been consolidated into one venue, as the Eighth Circuit of Appeals will hear the challenges. Scattered across the challenges, 25 states have co-filed petitions against the rule.
The final rule represented a pared-back version of the proposal, which the agency said was responsive to the over 24,000 comments it received on the regulation. The approved climate-risk disclosure rule eliminated a proposed requirement for companies to disclose scope 3 emissions, and limited scope 1 and 2 emissions reporting to public companies that are large accelerated filers or accelerated filers.
The omissions did not appease its detractors or all of its supporters. Two of the rule’s legal challenges come from environmental groups looking to challenge the rule’s exclusions of more extensive emissions reporting requirements. However, unlike the rest of the rule’s challenges, the two environmental groups’ protests do not question the SEC’s authority to promulgate the rule.
An SEC spokesperson previously told ESG Dive the agency believes it fully complied with the Administrative Procedure Act, and “will vigorously defend the final climate risk disclosure rules in court.”
Catch up here on ESG Dive’s coverage of all challenges the SEC faces on its final rule.