BURSTThe Securities and Exchange Commission (SEC) voted to stop defending a rule that required some companies to disclose their planet-warming emissions and how climate change would impact their business.
The Republican-majority commission’s Thursday decision is not a surprise, as it had previously said it would pause its defense of the rule.
However, the formal vote marks yet another step toward the likely death of a rule that sent shockwaves through Wall Street.
The SEC's acting chair, Mark Uyeda, said in a statement that the rule was “costly and unnecessarily intrusive.”
However, climate activists said that the decision provides less transparency for the public.
“Letting companies hide climate risks doesn’t make those risks any less real — it just makes it harder for investors to manage them and protect their long-term savings,” said Ben Cushing, director of the Sierra Club’s Sustainable Finance campaign, in a statement.