Georgia attorney general leads effort challenging SEC’s climate disclosure rule

Georgia Attorney General Chris Carr is leading a coalition that is challenging the U.S. Securities and Exchange Commission’s climate disclosure rule.

The new rule, adopted by the SEC on March 6, seeks to require companies to provide certain climate-related information in their registration statements and annual reports. Specifically, it requires information about a registrant’s climate-related risks that have materially impacted, or are reasonably likely to impact, its business strategy, results of operations, or financial condition. Further, under the final rules, certain disclosures related to severe weather events and other natural conditions will be required in a registrant’s audited financial statement.

Carr is leading a coalition of attorneys general from 10 states, who are petitioning the 11th Circuit Court of Appeals to declare the rule unlawful and vacate it entirely. Along with Georgia, the other states involved in this action are West Virginia, Alabama, Alaska, Indiana, New Hampshire, Oklahoma, South Carolina, Virginia, and Wyoming.

“President Biden is using the SEC to impose his climate agenda on every sector of our economy,” Carr said. “This unlawful rule will burden businesses with unnecessary requirements, and we’re pushing back on behalf of our fellow Georgians.”

In a Petition for Review, the attorneys general argue that this rule exceeds the agency’s authority; is arbitrary and capricious; is an abuse of discretion; and is not in accordance with law.

“Petitioners will show that the final rule exceeds the agency’s statutory authority and otherwise is arbitrary, capricious, an abuse of discretion, and not in accordance with law. Petitioners thus ask that this Court declare unlawful and vacate the Commission’s final action,” the legal challenge stated.

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