Recent U.S. Climate Disclosure Developments Pose Legal and Business Risks for Israeli Companies Traded in the U.S.
SEC Pauses Climate Disclosure Rule Pending Federal Court Decision – Israeli Companies Should Remain Vigilant.
On April 4, 2024, just weeks after adopting ground-breaking climate disclosure regulations, the U.S. Securities and Exchange Commission (SEC) issued an order temporarily suspending their implementation due to a legal challenge brought by Republican-led states, energy companies and business groups. Those contesting the regulations claim that the rules amount to environmental regulation, which they argue and therefore oversteps the SEC’s legal authority.
The regulations include mandatory disclosures related to greenhouse gas emissions (Scope 1 and 2) and the climate-related financial risks that companies may face.
To read the full update click here.
