SEC Temporarily Halts Climate Disclosure Rule Amid Legal Challenges

The U.S. Securities and Exchange Commission has paused the implementation of its new climate disclosure rule due to legal challenges, staying the rule while it defends it in court. The rule, which requires some public companies to report their greenhouse gas emissions and climate risks, faced immediate legal challenges and is pending review in the U.S. Court of Appeals for the Eighth Circuit. Despite the pause, the SEC intends to vigorously defend the validity of its climate rule, while companies continue to collect data and climate-related information to comply with similar rules in other jurisdictions.