A coalition of elected officials lawmakers and attorneys general from Democratic states submitted several friend of the court briefs to the 8th U.S. Circuit Court of Appeals last week, voicing their support for the U.S. Securities and Exchange Commission’s (SEC) climate risk disclosure rule amidst ongoing litigation.
As reported by E&E News’ Lesley Clark, the group of elected officials argue that the rule is necessary to provide investors with the data they need to make informed investment decisions and protect Americans’ retirement funds.
After the rule was first approved earlier this year, a group of 22 state attorneys general filed several lawsuits challenging the rule, despite climate risk disclosures being largely popular among a majority of American voters. The state attorneys general leading these attacks have collectively taken over $9 million in campaign contributions from the oil and gas industry.
The recently filed briefs accuse the lawmakers attempting to kill the rule of being “deeply enmeshed in a fossil fuel-funded network operating (often covertly) to deny the genuine danger (and risks) of climate change.” As the demand for standardized climate risk information continues to grow, lawmakers are urging the courts to move the SEC rule forward.
Read the full E&E News article here.
Research shows that both investors and the American people have similar outlooks on climate risk disclosures and the SEC disclosure rule–both being largely popular among both groups.
- Two-thirds of voters (80% of Democrats, 65% of Independents, and 55% of Republicans) support the proposed SEC rule, and a majority of Americans support responsible investing.
- More than half of voters, including 52% of Republicans and 63% of Independents, oppose Congress putting limits on these kinds of disclosures.
- A majority of voters agree that financial managers should be allowed to consider environmental factors when making investing decisions.
- Investors have repeatedly demanded reliable risk-related disclosures from companies. Shortly after the SEC released its initial proposal, nearly 200 investment firms, nonprofits, and state Treasurers sent a joint letter reaffirming support for the rule and outlining imperatives for the standard transparency requirements.
- Just a few days after the SEC released the proposed rule, global investment firm Franklin Templeton, which oversees more than $1.5 trillion in assets under management, issued its own statement of support. The firm noted that “to direct private capital to address the complex and daunting challenges of the energy transition, climate risk disclosure needs to be standardised, mandatory and regulated.”
Learn more about climate risk disclosures and the SEC’s rule here.
