As the market awaits the final version of the proposals on enhanced climate disclosures by issuers, sources have been speculating on the different kinds of lawsuits that could result from them.
Part of a raft of measures drafted by the Securities and Exchange Commission (SEC) to tackle greenwashing and increase transparency on ESG investment strategies, the proposed rules to enhance and standardize climate-related disclosures for investors have already faced a backlash from some industry participants.
“There will be a lot of back and forth over this and much political commentary, but in the meantime, corporations and firms should be working to put something in place and avoid waiting until all the details come out,” said Elaine Wood. “Litigation may ultimately overturn some of these proposals, but corporations, if they are wise, will not wait for something that might happen several years down the road.”
