On March 15, 2024, a three-judge panel of the U.S. Court of Appeals for the Fifth Circuit temporarily stayed the recently adopted Securities and Exchange Commission (SEC) climate disclosure rules, blocking their implementation for the time being amid litigation challenging the regulations.

The Fifth Circuit didn’t explain why it approved the administrative stay in its two-page unpublished order in response to requests for injunctive relief from seven companies and trade associations and three states (Louisiana, Mississippi, and Texas).

What this means to you

Although the phase-in period for disclosures under the new SEC climate rules does not begin until 2026 at the earliest, registrants will likely need to decide whether to begin their work preparing for compliance before a final judgement is rendered by the courts.

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