Here’s a quick and important update about the SEC climate disclosure rule litigation from John over on TheCorporateCounsel.net:
When the SEC announced its decision to stay the climate disclosure rules pending the outcome of litigation challenging them, it didn’t address the issue of whether there would be any changes in the implementation period for the new rules if the agency prevailed. This Gibson Dunn blog addressing the briefing schedule established by the 8th Circuit for that litigation highlights a recent court filing by the SEC that indicates that it intends to establish a new implementation period:
The SEC stated in a subsequent court filing that its voluntary stay eliminates the harms challengers had asserted that compliance with the rule would impose, including in the form of costs incurred to prepare for compliance with the rule, and that “[t]he Commission will publish a document in the Federal Register at the conclusion of the stay addressing a new effective date for the [final climate disclosure rules].” While the SEC has not specified the duration of the further implementation period if the rules survive the litigation, it thus has confirmed that a new implementation period will be provided.
In addition, California Governor Gavin Newsom announced yesterday that the state 2024-2025 budget includes funding for the state’s three new climate disclosure rules (read about them here, here and here), and the EU sustainability/climate disclosure mandates are law – impacting many US companies that either do business in the EU or have EU operations. As John points out, companies shouldn’t put their foot on the brakes of climate disclosure compliance efforts just because of the SEC rule status – there are other wheels turning.
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