The US Securities and Exchange Commission (SEC) adopted landmark final rules (Climate Disclosure Rules, or Rules) in March 2024 intended to enhance and standardize climate-related disclosures for publicly listed companies.
The Climate Disclosure Rules required all domestic and foreign publicly traded companies to disclose climate-related risks and mandated certain filers report material greenhouse gas emissions. For example, companies would have to disclose:
- The role of board and management in overseeing and managing climate-related risks
- Material climate-related risks and the material impact of such risks on their strategy, business model, and outlook
- Climate-related targets and goals, including how they intend to meet them and progress against them, and
- Certain information regarding capitalized costs and expenditures and charges and losses incurred as a result of a severe weather event.
A more fulsome description of the Climate Disclosure Rules is provided in the following alert: SEC climate disclosure rules key considerations for public companies.
The SEC voluntarily stayed the Rules on April 4, 2024, after nine cases challenging their validity were filed in federal courts across the country. Those cases were subsequently consolidated in the Eighth Circuit Court of Appeals and remain pending.
While the exact fate of the Rules remains unclear, our alert, “SEC Climate Disclosure Rules: Four potential paths under President Trump,” discusses potential pathways by which the Administration may address the Climate Disclosure Rules.