With a lawsuit filed today, Attorney General Todd Rokita is challenging the Biden administration's efforts to implement a new rule through the Securities and Exchange Commission (SEC). The rule would impose extensive requirements on U.S. companies related to environmental, social, and governance (ESG) standards.
Attorney General Rokita argues that this move shifts the SEC from its traditional role of enforcing laws against market manipulation to becoming "a partisan purveyor of environmental, social, and governance (ESG) standards." He expressed concern that such actions are part of a broader effort by "leftwing bureaucrats" to extend regulatory influence into all aspects of the economy.
The contested rule requires companies to gather and disclose detailed information about their greenhouse-gas emissions and their impact on climate change. According to Attorney General Rokita, these requirements could increase costs for consumers and diminish shareholder value. He stated, "Companies have a legal fiduciary duty to maximize returns to shareholders. Costly ideological requirements with no proven effect only drive up the price of goods for everyday Hoosiers and reduce value for shareholders."
The lawsuit seeks to have a federal appeals court declare the SEC's new rule unlawful.