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SEC accepts pause on its climate rule

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By illuminem briefings

· 2 min read

illuminem summarizes for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: The U.S. Securities and Exchange Commission (SEC) has decided to pause the implementation of its new climate disclosure rule amidst ongoing legal challenges regarding its legality
•  This pause is to avoid regulatory uncertainty as litigation proceeds

🔭 The context: The climate disclosure rule, initially proposed in 2022 and finalized in March 2024, mandates public companies to disclose their climate risks and emissions figures to investors
•  This includes, to a lesser extent after adjustments, reporting on emissions from supply chains and the use of their products by consumers

🌍 Why it matters for the planet: The rule aims to enhance transparency regarding the environmental impact of companies, pushing towards a more sustainable and environmentally aware business environment
•  Despite the temporary setback, the SEC's commitment to defending the rule underscores the growing importance of climate considerations in financial reporting

⏭️ What's next: While the rule's enforcement is on hold, many businesses have already started preparing to comply, indicating a shift towards more climate-conscious corporate practices
•  The outcome of the legal challenges will significantly impact how companies report their climate risks and actions moving forward

💬 One quote: “A Commission stay will facilitate the orderly judicial resolution of those challenges and allow the court of appeals to focus on deciding the merits,” said the SEC.

Click for more news covering the latest on ESG

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