Climate Disclosure and SEC Authority

The SEC's March 2024 climate disclosure rule, covering materiality qualifiers and Scope 1 and 2 emissions, faces lawsuits from both right and left groups over validity and costs. Key issues include materiality, prescriptive reporting, the First Amendment, and the Major Questions Doctrine (MQD). The MQD may challenge agency authority, with predictions of rule changes under a Republican administration and concerns over fragmented state regulations. International coordination is needed to ease compliance with varying frameworks like the EU's CSRD.