US climate risk disclosure rule doubts will persist

Significance

In April, the SEC voluntarily suspended the rule's implementation pending the review. Eleven legal cases brought before various courts by companies, states and NGOs challenging the rule's validity have been consolidated into one that the US Court of Appeals for the Eighth Circuit will hear.

Impacts

• If unsuccessful in appellate court, petitioners will seek to have the cases heard by the more sympathetic US Supreme Court.
• Conservative activists’ legal campaign against agency overreach will continue unabated if President Joe Biden is re-elected in November.
• Republican state legislators will continue to hinder the application of ESG principles to investment decisions.