· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on Bloomberg Law or enjoy below:
🗞️ Driving the news: The US Supreme Court's decision in Loper Bright Enterprises v. Raimondo to end the Chevron doctrine could significantly impact ESG regulations
• This ruling mandates courts to use independent judgment rather than deferring to agency interpretations, complicating regulatory compliance for companies
🔭 The context: Federal agencies have issued guidance on various ESG topics, but legal challenges are leveraging the Loper Bright ruling to argue against these regulations
• Ongoing cases, such as those against the Department of Labor’s ESG rule and the SEC’s climate-related disclosure rules, highlight the potential disruptions to ESG regulatory enforcement
🌍 Why it matters for the planet: The ruling could delay or hinder the implementation of crucial ESG regulations, impacting efforts to address environmental and social issues
• This regulatory uncertainty may shift the burden of providing ESG guidance to Congress, which is divided on these issues
⏭️ What's next: Companies need to stay informed about both regulatory changes and stakeholder expectations, as ESG challenges will likely persist
• Businesses should prepare for compliance with state-level and international ESG regulations, regardless of federal rule enforcement delays
💬 One quote: "To the extent agencies become more hesitant to issue rules given Loper Bright or due to more challenges to those rules—which will delay enforcement, at a minimum—it may hinder the ability of administrative agencies to efficiently govern in the ESG sector"
📈 One stat: Legal challenges to the SEC's climate-related disclosure rules, pending in the Eighth Circuit, are a significant focus following the Loper Bright ruling
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