The recent U.S. Supreme Court decision in Loper Bright has overturned the Chevron deference, a precedent that favored federal agencies’ rulemaking interpretations. This change is set to have significant ramifications for various regulatory frameworks, particularly those dealing with climate disclosure and environmental, social, and governance (ESG) rules implemented by the U.S. Securities and Exchange Commission (SEC).
Without the shield of agency deference, the SEC’s regulations in these areas are now more vulnerable to legal challenges on the grounds of insufficient statutory support. Legal experts, including Justin Chretien at Carlton Fields, suggest that this could lead to these rules being vacated by the courts.
For more detailed analysis on this issue, you can refer to the original article here.