SEC’s Climate Reporting Freeze Is No Time for Corporate Inaction

Because there isn’t yet a schedule for the challenge, it’s hard to predict whether the court will have reached a final ruling—or if parties will appeal that ruling—before the compliance dates for initial reporting would have come into effect. For example, large accelerated filers would have initial reports due by 2026 for fiscal year 2025 information.

Groups and states seeking to defend the rule or make it more stringent may seek to overturn the SEC’s stay in court. If the rule is ultimately upheld, in whole or in part, and the compliance dates aren’t adjusted following the adjudication process, registrants could find themselves in a time crunch if the SEC immediately lifts the stay at the conclusion of the case.

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While it may be imprudent to begin this work in earnest while the rule is in flux, initial preparations may be warranted. Companies also should consider the extent they may have to do similar work for other reporting measures—such as the EU’s Corporate Sustainability Reporting Directive or California’s climate disclosure laws.

Source: SEC’s Climate Reporting Freeze Is No Time for Corporate Inaction