SEC Drags Feet on Climate Rule Carriers Say Will Upend Reporting, Cost a Lot

Jeffrey Karp was quoted in the article, "SEC Drags Feet on Climate Rule Carriers Say Will Upend Reporting, Cost a Lot," published by P&C Specialist [sub. req'd] on February 15, 2023.

The article discusses a proposed climate disclosure rule that would require publicly traded companies to disclose climate-related information in registration statements and annual reports, which many are criticizing because of the new compliance costs it introduces and the excess of data required to be provided. Due to these criticisms, the SEC has dragged on the process.

"I think the charge will be led by a group of states attorneys general, headed by the attorney general of West Virginia, who gained a great deal of notoriety and press from successfully challenging an EPA proposal that would have required fossil fuel power plants to ultimately adopt various types of new technologies and renewable energy, forcing closure of coal plants, and even necessitating a move away from the use of natural gas," Jeff comments.

Jeff also added that the final rule, when enacted, will be challenged in federal court and will likely end up before the Supreme Court. "Other rules have been stayed by the Circuit Courts of Appeal and the Supreme Court pending final decisions. Therefore, it's going to take a while before the SEC can implement what remains of the rule after all of the judicial slicing and dicing occurs."