Earlier this month, the U.S. Securities and Exchange Commission (SEC) adopted rules related to climate-related disclosures (see the fact sheet here). The rules would require companies to make disclosures relating to the following (among other things) over a phased in compliance period:

• Material climate-related risks and activities to mitigate such risks;
• Oversight of climate-related risks and management’s role in managing material climate-related risks;
• Any climate-related targets or goals material to the registrant;
• Disclosure of material Scope 1 and Scope 2 greenhouse gas emissions by certain larger registrants; and
• Disclosure of the financial statement effects of severe weather events.

Perhaps not surprisingly, these rules were immediately challenged in court, and, on March 15, 2024, the Fifth Circuit granted an emergency stay of the rules. If the stay continues for an extended period of time, it may delay implementation of the rules, even if the rules are eventually upheld.