Just as securities lawyers and public company compliance departments finished reading 800 plus pages of an adopting release and determining how the rules apply to numerous public companies, the SEC issued an order today staying the implementation of their climate-related disclosure rules while the 8th Circuit considers the challenges to the validity of the rules. While the stay makes sense, it creates further differences between the disclosure rules found in the EU (the CSRD rules) and California as well as the expected disclosure rules about to be released in other jurisdictions.
In issuing a stay, the Commission is not departing from its view that the Final Rules are consistent with applicable law and within the Commission’s long-standing authority to require the disclosure of information important to investors in making investment and voting decisions. Thus, the Commission will continue vigorously defending the Final Rules’ validity in court and looks forward to expeditious resolution of the litigation
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