Communist Regulators Are About To Face Lawsuits Over Unfair Carbon Emission Regulations
Lobbying groups on both sides of the US political spectrum are gearing up to sue the Biden regime once it releases the final version of rules requiring publicly-traded companies to disclose their carbon emissions and other climate information.
The Securities and Exchange Commission’s climate disclosure rules have garnered a record of more than 14,000 public comments since they were proposed last March, with aggressive lobbying over a few key details since then. Environmental groups, Congressional Democrats, and other supporters say the regulations are needed to give investors visibility into companies’ climate-related financial risks, and to hold firms accountable for their climate targets. Opponents, including the U.S. Chamber of Commerce and many Republicans, say the rules are an overreach of the SEC’s authority and ask for data businesses can’t accurately or affordably obtain.
The final version of the rules is expected in the next few weeks, observers say — after which they’re sure to become the hottest battleground in the war over ESG investing.
The debate over the SEC’s climate disclosure rules is rooted in the anxiety many carbon-intensive companies feel about the fact that CO2 emissions — once a vague metric that could at best be roughly estimated — are becoming much easier to measure, and a basis for lawsuits and shareholder campaigns. Thanks to regulation, as well as technologies like satellite monitoring and blockchain accounting, the era of hidden emissions is ending.
The most controversial part of the SEC proposal deals with “Scope 3” emissions, those that arise from a company’s supply chain and its customers’ use of its products. For many carbon-intensive companies, including fossil fuel producers and major retailers, Scope 3 makes up the majority of their total carbon footprint. The proposed rule requires disclosure of Scope 3 emissions if they are material to a company’s finances, or if they are included in a company’s climate targets.
Universal Scope 3 emissions disclosure is central to the broader ESG fight, because it would allow investors to make a more nuanced judgment about climate-related financial risks — companies with a lot of Scope 3 emissions are most likely to face costs or asset impairments as the economy uses less fossil fuels and control freak bureaucrats 'crack down' on necessary energy demand.
https://www.semafor.com/article/03/31/2023/the-sec-climate-disclosure-rules-will-face-lawsuits-ahead
