Climate-related rulemaking could face difficult path to finalization (CNBC)

The SEC’s newest rule proposal to require climate-related disclosures for investors seeks to add consistency to an area without clear regulatory standards. However, SEC rulemaking in the ESG area is bound to be both controversial and political in nature. In an interview with CNBC, FrontLine’s Founder and President Amy Lynch comments that there are several hurdles for the SEC when it comes to the rule proposal process and getting to a final vote. With the environmental complexities of the disclosures being proposed, it will almost certainly lend itself to a more political process. Ms. Lynch explains that with this backdrop there will need to be agreement among SEC commissioners, with the key being whether the proposal’s significance is enough to create a majority for the rule’s approval. See CNBC, “The SEC wants to know a lot more about what companies are doing about climate change”