The US Securities and Exchange Commission (“SEC”) has come under increased scrutiny following its widely anticipated proposed rules that would require extensive reporting by public companies of climate change-related disclosures and related attestations.
On April 25, 2022, a group of professors of law and finance submitted a comment letter raising questions concerning the proposed rules. The letter calls into question whether the Commission, as a financial regulator, has the authority to collect information on a company’s contribution to climate change. In addition, the letter argues that the proposed rules respond to interest groups that are not among the SEC’s statutory constituencies.
On June 17, 2022, with now 22 signatories, the group of academics filed another letter urging the Commission to withdraw its proposal. The June 17th comment letter requests that the Commission withdraw the proposed rules, as they are neither appropriate for either investor protection nor the public interest.