5 Takeaways From The SEC’s New Climate-Related Disclosure Rule

March 7, 2024

After two years of drafting and delays, the U.S. Securities and Exchange Commission adopted the Climate-Related Disclosure Rule on March 6. The final rule will require large publicly traded companies to disclose climate action, greenhouse gas emissions, and the financial impacts of severe weather events. While the rule is significantly reduced from the original proposal in 2021, it will inevitably face legal challenges and political pushback from the House of Representatives and Republican controlled states. The rule will be phased in, beginning in 2026.