SEC Chair Gary Gensler attends a meeting of the Financial Stability Oversight Council at the U.S. Department of Treasury on December 14, 2023 in Washington, DC. | Photo by Drew Angerer/Getty Images

A landmark climate disclosure rule adopted by the US Securities and Exchange Commission (SEC) yesterday is already facing mounting legal and legislative challenges. Ten states filed suit yesterday shortly after the rule was finalized. Environmental advocates also say they’re considering challenging the rule.

If implemented, the SEC’s new rule would force large, public companies to disclose risks they face due to climate change and share partial information about their greenhouse gas emissions. It would lead to dramatically more transparency than there’s been in the past, but would still paint an incomplete picture of a company’s environmental footprint since companies would only be mandated to divulge a portion of their emissions.

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