HLLI opposes SEC rule mandating climate disclosures

June 17, 2022

Press Releases> Regulatory Comment Letters

admin

On June 17, 2022, HLLI submitted a comment letter to the Securities and Exchange Commission requesting that the SEC withdraw its proposed rule on climate-related disclosures for investors. The proposed rule is a dramatic overreach of the SEC’s authority and mission to protect investors. Our comment letter emphasizes that the proposed rule’s mandated disclosures will lead to costly and frivolous securities class-action lawsuits that will primarily enrich class-action lawyers and do little to protect shareholders or investors, improve corporate performance, or benefit the environment. The letter also notes that the proposed rule will result in registrant companies seeking out an army rent-seeking climate-disclosure consultants and other similar “professionals” in an effort to avoid such lawsuits and appease activist shareholders that are focused on ESG issues.

A copy of the comment letter is available here. We hope that the SEC thoughtfully considers our letter and withdraws the proposed rule, or in the alternative, revise the rule to limit the scope, reach and expense of any mandated climate-related disclosures.