The SEC’s Decision
This week, the SEC announced a temporary halt to the implementation of its fresh climate disclosure rule while it grapples with legal challenges, opting to consolidate ongoing lawsuits aimed at overturning it.
Legal Backlash
Over 20 states led by Republicans along with various business groups have initiated legal action to reverse the rule, alleging that the disclosure mandates exceed the SEC’s jurisdiction.
SEC Stance
Despite facing resistance, the SEC maintains its belief in the rule’s legality and asserts its authority to enforce it, choosing to focus on defending the rule’s integrity in court battles.
Rule Amendments
The SEC recently made revisions to the rule, including scaling back requirements for reporting Scope 3 emissions related to supply chains and end-users of products from certain companies.
Industry Response
American Petroleum Institute’s legal counsel, Ryan Meyers, praised the SEC’s decision to pause the rule, stating that it prevents undue financial strain on companies until the legality of the rule is settled.
Note: ETFs affected include: (NASDAQ:ICLN), (NASDAQ:QCLN), (PBW), (PBD), (ACES), (CNRG), (ERTH), (SMOG), (XLU), (XLE)
