Key Takeaways From The SEC's New Climate-Related Disclosure Rules

On March 6, 2024, the U.S. Securities and Exchange Commission (SEC) adopted the long-anticipated Climate-Related Disclosure Rules aimed at enhancing transparency and disclosure around climate-related risks and opportunities for U.S. public companies and most foreign private issuers. The SEC received more than 24,000 comments following publication of the proposed rules in March 2022.

While the final rules are meaningfully scaled back from the proposed rules, notably eliminating the proposed requirement to disclose Scope 3 greenhouse gas emissions, the final rules are still some of the most sweeping and controversial ever passed by the SEC. The SEC adopted delayed and staggered compliance dates for the final rules that vary according to the filing status of the registrant. Immediately upon adoption, the final rules were met with lawsuits that challenge their validity and enforceability. While states and businesses claim the new rules go too far, environmental groups