Supreme Court’s Overturn of Chevron Deference Casts Uncertainty Over ESG Rulemaking

The recent decision by the U.S. Supreme Court in Loper Bright has overturned the longstanding Chevron deference, which traditionally granted federal agencies significant leeway in interpreting statutes. This legal shift is expected to introduce new challenges for the development and implementation of environmental, social, and governance (ESG) regulations. Leah Malone of Simpson Thacher suggests that the ruling may significantly impact the future of ESG rulemaking, potentially questioning the validity of current administrative actions in this evolving area.