In a groundbreaking legal move, the Sierra Club and the Sierra Club Foundation have taken the Securities and Exchange Commission (SEC) to court over its recently approved climate disclosure rule. This lawsuit, filed in the U.S. Court of Appeals for the District of Columbia Circuit, contends that the rule falls short of providing investors with comprehensive information about companies’ climate risks. Represented by Earthjustice, the environmental groups argue that the SEC’s decision to scale back on crucial disclosure requirements is a mistake that could leave investors in the dark about the true extent of climate-related risks. While the SEC’s rule aims to enhance clarity regarding companies’ climate disclosures, critics, including the Sierra Club, assert that the agency’s approach lacks robustness, particularly in mandating emissions disclosure. This legal battle underscores the growing urgency for transparent and comprehensive climate risk reporting in the financial sector.
ClimateReporting #SEC #LegalDisclosure #EnvironmentalLaw #InvestorInformation #ClimateRisks
Source: https://www.politico.com/news/2024/03/13/sierra-club-sues-sec-over-climate-reporting-rule-00146868
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