Ceres Criticizes SEC’s Delay Request in Climate Disclosure Rule Lawsuit as Failure to Protect Investors

Ceres stated in a press release that the U.S. Securities and Exchange Commission’s (SEC) request to delay scheduling oral arguments in the lawsuit challenging the federal climate disclosure rule is an “abdication of the agency’s mission to protect investors.” The SEC rule mandates that publicly traded companies disclose how material climate-related risks affect their financial and operational performance, as well as how they incorporate climate action into their overall strategy and governance. Steven M. Rothstein, Ceres’s Managing Director for the Ceres Accelerator for Sustainable Capital Markets, said:

“Today’s request to delay hearing arguments in this important case is truly unfortunate. The SEC was established to protect investors, and for more than 20 years, investors have clearly and overwhelmingly stated that they need more clear, consistent, and decision-useful information on companies’ exposure to climate-related risks. The ongoing acceleration of physical climate risks, including the recent tragic fires in Los Angeles, has underscored the importance of transparency on these risks.

The rule the SEC adopted last March marked the most significant improvement to the climate-related disclosure landscape in U.S. history, and the final rule was very responsive to the record-breaking 24,000 public comments the agency received on its proposal. This decision by the SEC to walk away from defending its own rule in court is an abdication of the agency’s investor protection mission.”