Davis Polk counsel and Environmental practice head Loyti Cheng and counsel David Zilberberg discussed the tight timeline for the SEC to issue its finalized climate disclosure rules with IFR.

Given that next year will be an election year, David noted that the SEC is “likely to make every effort to issue the final rule in the early half of 2024” in order to avoid Congressional Review Act concerns.

When asked about a potential Scope 3 emissions disclosure requirement, which is the most contentious component of the SEC’s rules, Loyti noted that new climate disclosure laws in California “could make it more palatable for the SEC rules to contain a Scope 3 disclosure since it’s required for many companies anyway.”

SEC faces tight timeline for climate rules before election,” IFR (December 15, 2023) (subscription required)