SEC Climate Rules Risk Legal Battle with Environmental Groups

The SEC’s upcoming corporate climate disclosure rules face a new legal threat from environmentalists after Republicans and businesses have long signaled they would sue to stop the regulations.

The Sierra Club and Earthjustice are strongly considering suing the Securities and Exchange Commission, if the agency softens or abandons plans for big companies to disclose the Scope 3 emissions from their supply chains and other indirect sources under the new corporate reporting regime, three environmental advocates told Bloomberg Law.

The SEC has already received legal threats from business interests and about two dozen Republican state attorneys general for several months as ...