Uncertain future for adopted SEC climate risk disclosure rule
The final, watered down rule can still be struck down... but would it matter to Chief Sustainability Officers?
The US Securities and Exchange Commission (SEC) has adopted its watered down climate risk disclosure rule in a disputed 3-2 vote, but its future remains uncertain in the face of legal challenges and increasing polarisation around ESG topics.
The final rule, set to be phased in from 2025, includes 12 climate-related disclosures, such as material climate-related risks, their impact on strategy, business model and outlook, mitigation spending, board oversight of climate-related risks and Scope 1 and/or 2 emissions deemed material.
