The SEC Adopts Final Climate-Related Disclosure Rules

What You Need To Know

• On March 6, 2024, the SEC adopted landmark disclosure rules (Final Rules) mandating extensive climate-related disclosure in companies' annual reports and registration statements.
• While the Final Rules eliminate the requirement to disclose Scope 3 emissions from indirect sources and make numerous other changes from the proposed rules, the overall compliance burden for reporting companies will increase, in some cases very significantly. Even companies that ultimately reach the conclusion that many aspects of the disclosure are not required because they are not material will need to expend significant resources and effort in reaching that conclusion.
• With the European Union, the State of California and other jurisdictions and private organizations adopting and releasing climate-reporting regulations and guidelines, companies will face a patchwork of overlapping climate-related regulations that they will need to prepare for in the coming