The U.S. Securities and Exchange Commission’s adoption of its climate disclosure rule this week followed dueling contentions between Democratic and Republican commissioners over whether the agency has the authority to require the environment-related disclosures — a debate likely to be front and center in legal challenges.
The SEC voted 3-2 along party lines to approve its climate disclosure rule requiring registrants to disclose material climate-related risks faced by a company. The rule requires certain large registrants to disclose information on a company’s direct or indirect greenhouse gas emissions.