Firms continue to push sustainability reporting despite legal challenges, rule pause

illuminem summarizes for you the essential news of the day. Read the full piece on Forbes or enjoy below:

🗞️ Driving the news: Despite the U.S. SEC's Climate-Related Disclosure Rule being paused due to legal challenges, firms continue to push for sustainability reporting
• The financial industry largely ignores the stay, encouraging compliance with the anticipated rule

🔭 The context: The SEC's rule, proposed in March 2024, requires companies to disclose climate actions and GHG emissions
• Legal challenges have paused the rule's implementation, with opponents claiming the SEC overstepped its authority

🌍 Why it matters for the planet: Effective sustainability reporting could significantly enhance transparency and accountability in corporate climate actions, promoting more robust environmental practices globally

⏭️ What's next: The Supreme Court will eventually rule on the SEC's authority, a process that could extend until 2026
• Meanwhile, companies should focus on avoiding greenwashing and preparing for stringent EU regulations

💬 One quote: “You’re going to be disadvantaged in the market if you’re left holding a big bag of carbon 10 years from now” — John Morton, Pollination Group

📈 One stat: Compliance costs for the SEC rule are estimated to be up to $500,000 in the first year and $375,000 annually thereafter

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