Ceres statement on SEC's decision to walk away from defending the federal climate disclosure rule

BOSTON — The U.S. Securities and Exchange Commission’s request to delay scheduling oral arguments in the litigation challenging the federal climate disclosure rule is an “abdication of the agency’s mission to protect investors,” Ceres said in a statement.  

Steven M. Rothstein, Ceres’s Managing Director for the Ceres Accelerator for Sustainable Capital Markets, added: 

“Today’s request to delay hearing arguments in this important case is truly unfortunate. The SEC was established to protect investors, and for more than 20 years, investors have clearly and overwhelmingly stated that they need more clear, consistent, and decision-useful information on companies’ exposure to climate-related risks. The ongoing acceleration of physical climate risks, including the recent tragic fires in Los Angeles, has underscored the importance of transparency on these risks.

The rule the SEC adopted last March marked the most significant improvement to the climate-related disclosure landscape in U.S. history, and the final rule was very responsive to the record-breaking 24,000 public comments the agency received on its proposal. This decision by the SEC to walk away from defending its own rule in court is an abdication of the agency’s investor protection mission.” 

The SEC rule requires transparency from publicly traded companies on how material climate-related risks impact their financial and operational performance and how they integrate climate action into their broader strategy and governance. 

About Ceres

Ceres is a nonprofit advocacy organization working to accelerate the transition to a cleaner, more just, and sustainable world. United under a shared vision, our powerful networks of investors and companies are proving sustainability is the bottom line—changing markets and sectors from the inside out. For more information, visit ceres.org.