SEC Climate Rule Pause Creates Path for Faster Court Decision

The Securities and Exchange Commission’s decision to unilaterally pause the implementation of its climate reporting rules places the agency on a faster track for a decision on the rules’ legality.

The SEC on April 4 told the US Court of Appeals for the Eighth Circuit it would stay the requirements for public companies to report their greenhouse gas emissions and disclose climate-related risks to their business, pending the court’s review.

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By issuing the stay on its own, the SEC is eliminating back-and-forth over various requests from plaintiffs to pause the rule, attorneys said.

“The SEC’s agreement to a voluntary stay means that the litigation will proceed much more speedily and efficiently on the merits of the challenges,” said Jacob Hupart, co-chair of the ESG practice group at Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

Source: SEC Climate Rule Pause Creates Path for Faster Court Decision