SEC’s Final Climate Rules for Public Companies: Key Requirements and Takeaways

March 18, 2024

Insights for Companies and Boards of Directors

On March 6, the SEC adopted its landmark climate-related disclosure rules for U.S. public companies and foreign private issuers. Although the SEC has removed or narrowed certain of its more onerous proposed requirements (including Scope 3 reporting), the final rules still prescribe expansive climate-related disclosures that will meaningfully increase the cost, risks and complexity associated with public reporting. Key implications for public companies include the relatively short initial compliance timeline, interpretive challenges, liability considerations and overlapping requirements in other jurisdictions. Multiple parties have filed lawsuits challenging these rules, which further amplifies uncertainty. On March 15, 2024, the Fifth Circuit granted an administrative stay of the SEC’s climate rules temporarily halting the implementation of the rules.

S&C hosted a webinar examining the key requirements of the final rules and providing practical takeaways to facilitate compliance. The webinar was led by S&C Co-Chair Scott Miller, Partners Cathy Clarkin, Bob Downes, John Horsfield-Bradbury and Morgan Ratner, and Special Counsel June Hu.