SEC Finalizes Climate Change Disclosure Rule

On March 7, 2024, the Securities and Exchange Commission (SEC) approved final rules under the Securities Act of 1933 and Securities Exchange Act of 1934 to require public companies to provide certain climate-related information in their registration statements and annual reports. The final rules will require information about a registrant’s climate-related risks that have materially impacted, or are reasonably likely to have a material impact on, its business strategy, results of operations, or financial condition. In addition, under the final rules, certain disclosures related to severe weather events and other natural conditions will be required in a registrant’s audited financial statements.

This rulemaking by the SEC comes after several years of deliberation and debate in response to the SEC's initial proposal of April 11, 2022. The final rule is significantly less ambitious than the initial proposal; among other changes, the SEC has reduced the number of companies required to report Scope 1 and 2 emissions, and not adopted an early proposal that would have required certain registrants to report Scope 3 emissions.

The new rule will enter into effect 60 days after the date that it is published in the Federal Register.

[This entry will be updated with additional context and analysis by Sabin Center researchers in the coming days. For additional analysis of this and other issues, follow the Sabin Center's Climate Law Blog.]