Overview
- The SEC has proposed to repeal the climate-related disclosure requirements it adopted in March 2024, which never took effect because they were stayed during litigation.
- The 2024 rule would have required public companies to report greenhouse gas emissions, describe how they manage climate-related risks, and disclose financial effects of severe-weather events on their financial statements.
- The agency explained it will not defend the original rule in court, which led the U.S. Court of Appeals for the Eighth Circuit to hold consolidated petitions in abeyance while the SEC reconsiders the rule through notice-and-comment rulemaking.
- The SEC’s proposal frames the rule as beyond its statutory authority, estimates about $4.9 billion in annualized compliance savings for registrants, and invites public comment through the Federal Register process.
- Investor and environmental groups warn rescission would leave less comparable climate data for investors, while business and conservative groups praise the move as a deregulatory cost cut, and companies will still face state and international disclosure regimes that create a patchwork of rules.