In Pensions & Investments, Michael Littenberg Discusses SEC Ending Defense of its Climate Disclosure Rule

In a Pensions & Investments article, partner Michael Littenberg, global chair of the firm’s ESG, CSR and Business and Human Rights compliance practice, discussed implications of the U.S. Securities and Exchange Commission (SEC) announcing that it had voted to end the defense of its public company final rules on the enhancement and standardization of climate-related disclosures for investors.

Michael notes the decision was not a surprise since the Republican commissioners have expressed the view that the SEC’s principles-based disclosure regime already is sufficiently flexible and robust to address climate matters to the extent they are material and rules specific to climate and therefore unnecessary.

Michael said that it is premature to forecast on next steps concerning the SEC legal challenges, but climate disclosures will still be a factor that public companies have to consider, since California and the European Union have implemented their own climate disclosure rules.