New York, Monday, March 25, 2025 – A federal Appeals Court has temporarily halted the Securities and Exchange Commission’s (SEC) new rules requiring public companies to disclose climate-related risks.1
The US Court of Appeals for the Fifth Circuit granted an administrative stay on March 15, 2024, while legal challenges to the rules proceed.
The 5th Circuit’s order lacked explanation. This marked the initial court response to numerous lawsuits following SEC approval of the rules.
The SEC rules, finalized earlier this month, would have mandated that companies report on climate change risks they face, their plans to address those risks, and the financial impact of severe weather events. The rules also included greenhouse gas emissions reporting for certain companies.
Industry groups and some Republican lawmakers had argued the SEC overstepped its authority with these rules. Environmental groups, on the other hand, have criticized the rules for not going far enough.
The court’s decision is a setback for the Biden administration’s efforts to address climate change through financial regulation.
- Fifth Circuit: https://www.reuters.com/sustainability/us-appeals-court-temporarily-pauses-sec-climate-disclosure-rules-2024-03-15/[↩]
