The SEC said in its ruling that the stay does not indicate an abandonment of the rule, which it will continue to defend against a court challenge from Republican attorneys general.
“The Commission has determined to exercise its discretion to stay the Final Rules pending the completion of judicial review of the consolidated Eighth Circuit petitions,” the agency said in its order. “[T]he Commission will continue vigorously defending the Final Rules’ validity in court and looks forward to expeditious resolution of the litigation.”
The rule, finalized by the SEC earlier last month, requires companies to disclose any risks climate change poses to their business and, in some cases, for larger and mid-sized companies to provide information about their carbon dioxide emissions.
Nine Republican attorneys general, led by Brenna Bird of Iowa, have sued in the Eighth Circuit, arguing it exceeds the agency’s authority. The lawsuit is one of three against the rule, with a total of 25 Republican state AGs involved in litigation.
A coalition of 18 Democratic AGs, meanwhile, has filed a motion to intervene in defense of the rule in the Eighth Circuit case, writing “investors need reliable, comparable information about risks that registered companies face and how they are managing those risks.”
Read more at TheHill.com.
