Chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has issued a cautionary statement to corporate America on the topic of the agency’s climate change proposal. Gensler’s argument that businesses should not be so quick to challenge the proposal in court, centers on the potential aftermath of operations having to comply with possibly stricter sustainability standards implemented by the European Union (EU).
The climate change proposal has been a subject of controversy, with corporations concerned about the potential impact on their operations. However, Gensler’s warning emphasizes the alternative – the prospect of falling in line with the EU’s sustainability standards, which could present even more stringent rules for businesses.
This caution from the SEC’s chairman adds another layer of complexity to the global conversation on climate change regulations and their impact on corporations. With the EU’s exact standards yet to be determined, businesses are left contemplating the possible outcomes of a successful lawsuit against the SEC’s proposal versus adhering to the unknown regulations to come from the EU.
For further details of Gensler’s comments and the contested climate change proposal, more can be found at this Law360 report.