SEC Climate Disclosure Rules Spark Flurry of Litigation
On March 6, 2024, the United States Securities and Exchange Commission (“SEC”) adopted the much anticipated climate-related disclosure rules, two years after publishing the proposed rules. Immediately following the adoption of the rules, multiple parties filed petitions for review in six different appellate courts: the Second, Fifth, Sixth, Eighth, Eleventh, and D.C. Circuits. A total […]
Sarah Levine is a Partner, Howard Sidman is the Deputy Chair of ESG, and Rose Mooney is an Associate at Jones Day. This post is based on a Jones Day memorandum by Ms. Levine, Mr. Sidman, Ms. Mooney, and Brett Shumate.
On March 6, 2024, the United States Securities and Exchange Commission (“SEC”) adopted the much anticipated climate-related disclosure rules, two years after publishing the proposed rules. Immediately following the adoption of the rules, multiple parties filed petitions for review in six different appellate courts: the Second, Fifth, Sixth, Eighth, Eleventh, and D.C. Circuits. A total of 25 states filed petitions across four of those circuits (the Fifth, Sixth, Eighth, and Eleventh Circuits). The American Free Exercise Chamber of Commerce joined the state-led suit in the Eighth Circuit. In addition, the U.S. Chamber of Commerce and two affiliated Texas business groups, two energy companies, and two energy producer trade associations filed three additional petitions in the Fifth Circuit.
Environmental groups also filed suit: the Sierra Club filed in the D.C. Circuit; and the Natural Resources Defense Council filed in the Second Circuit. The latter two petitioners largely support the SEC’s authority to issue the rules but will likely argue the SEC should have gone further. These groups appear to have filed their petitions in courts that may be more deferential to the SEC than the circuits chosen by the other petitioners.
