Securities & Exchange Commission (SEC)’s Climate Disclosure Rule

The Securities and Exchange Commission (SEC) in the United States approved their long-awaited Climate Disclosure Rule in March. The Rule is expected to impact some Canadian companies registered with the SEC, including Canadian subsidiaries of SEC registrants.

The Rule will impact certain Canadian companies that are registered with the SEC, as well as Canadian subsidiaries of a company that is in-scope of the Rule (e.g., a Canadian subsidiary of a U.S. domestic filer).

Following the announcement of the Rule, several lawsuits were filed against the SEC and a U.S. appeals court granted a request for an administrative stay on the Rule. Subsequently on April 4, 2024, the SEC put a stay on the Rule, until pending litigation against the Rule is complete.

Read our summary of the Rule on Sustainability Simplified.

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