SEC climate rule prompts a rush to sue. Experts say companies are likely to prepare to comply anyway
An expected long legal battle has begun over a new rule that requires companies to disclose some emissions and climate-related information
WASHINGTON — The U.S. Securities and Exchange Commission's new rule requiring companies to disclose some emissions and climate-related information was barely passed before the agency was being hauled to court.
The rule adopted in early March was watered down from what the nation's top financial regulator had proposed two years ago, thanks to intense lobbying and talk of litigation from business and trade groups and some conservative lawmakers.
But weakening the rule didn't stave off lawsuits, and what's expected to be a lengthy legal battle is now underway. Here are some things to know about the rule and what's ahead:
EXACTLY WHAT IS THE SEC REQUIRING?
The rule requires that U.S.-listed companies publicly report their greenhouse gas emissions, climate-related risks and information about their plans to transition to a low-carbon economy.
The agency dropped a requirement that would have had companies report some indirect emissions known as Scope 3. Those don’t come from a company or its operations, but happen along its supply chain — for example, in the production of the fabrics that make a retailer’s clothing — or that result when a consumer uses a product, such as gasoline.
The rule was also softened to allow companies to decide whether some direct and indirect emissions are “material” to their business before reporting them, giving them some discretion in whether to report.
Some smaller companies don't have to report their emissions at all.
WHO IS CHALLENGING THE RULE?
Just hours after the SEC adopted the rule March 6, a coalition of 10 states including West Virginia, Alaska and
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