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SEC defends against climate disclosure rule challenges in court

Wildfires Burning In British Columbia, Canada
Photo: Julia Beverly/Getty Images

Agency claims it has authority to require financially significant risk disclosures, including those that relate to the environment.

In a brief filed last week, the SEC asserted a climate disclosure rule it adopted in March 2024 is well within the scope of its statutory mandate, which allows it to require disclosures to facilitate informed investing.

The rule requires public companies to disclose their exposure to financially material climate information