ANALYSIS: Climate Goals Get Riskier With New SEC Rule

The SEC finalized its new climate rules on March 6, but there are still hurdles to overcome.

If the rule survives the lawsuits ahead, it would require that corporate entities disclose information on their climate goals if they pose “material” risks to the business—including how the entities plan to meet their goals—in corporate annual reports and registration statements. Compliance dates for these disclosures begin in fiscal year 2025 for some filers.

While the rule is intended provide investors with clear and comparable information, these requirements could have a chilling effect on climate goal setting.

Adopting Climate Goals

Companies ...