Adopted by a 3-2 vote on March 6, 2024, following two years of public debate, the Climate Rules have gained significant attention, with over 24,000 comments received by the SEC from various stakeholders.

 Initially, nine cases challenging the Climate Rules were filed across various circuit courts and on March 19, 2024, the SEC requested these cases to be consolidated into a single venue. This request was granted, and all cases were transferred to the Eighth Circuit Court of Appeals on March 21, 2024.

Critics argue that the SEC exceeded its statutory authority by enforcing regulations that should primarily protect against financial fraud, not promote social views. However, the SEC maintains that the rules fall within its authority and are supported by academic literature linking climate risks and firm fundamentals.

 The final rule requires registrants to provide comprehensive climate-related disclosures in their annual reports and registration statements, including those for IPOs, beginning with annual reports for the year ending December 31, 2025, for calendar-year-end large, accelerated filers. Depending on when the legal challenges are resolved, the mandatory compliance dates may be retained or delayed.

Access the order issuing stay and the final rule on climate-related disclosure on the SEC’s website.