The U.S. Securities and Exchange Commission (SEC) under Chair Gary Gensler is issuing regulations at a notably relaxed pace for a new presidential administration, representing its slowest pace in decades. This trend carries the risk of leaving climate disclosure rules, alongside other prioritised ESG reporting items, incomplete.Bloomberg Law reports that Gensler’s SEC has only adopted 22 rules since he assumed his position in April 2021. This figure is reportedly lower than that of the first SEC chairs for every administration since at least George W. Bush’s presidency.
Identifying this pace of regulation under Gensler’s leadership is significant for legal professionals within major corporate and law firms. The relative slowdown in rulemaking may affect regulatory expectations and corresponding corporate and legal strategies. While Gensler seems to be making strides in closing this gap, he has less than 18 months before an administration change could potentially leave his ESG agenda incomplete.
The lag in rulemaking under Gensler’s leadership could mean that planned environmental, social, and governance (ESG) reporting rules, including those relating to climate disclosures, may remain undone. This slow progress may pose unique challenges for corporations and law firms that anticipate regulatory changes in these areas and underscores the importance of monitoring the pace and prioritisation of SEC rulemaking processes.