WASHINGTON (LN) — The Securities and Exchange Commission on Friday proposed rescinding climate-related disclosure rules adopted in 2024, saying the requirements exceed the agency’s statutory authority and impose unjustified costs on public companies.
The commission voted in March 2025 to abandon its defense of the rules after they were stayed pending consolidated litigation in the U.S. Court of Appeals for the Eighth Circuit. The Eighth Circuit in September 2025 held the petitions in abeyance, giving the SEC room to reconsider through notice-and-comment rulemaking.
“SEC disclosure obligations should comply with the Commission’s statutory authority, be guided by materiality as the North Star, avoid the practical effect of dictating corporate behavior, and be imposed only when the expected benefits justify the likely costs and burdens,” SEC Chairman Paul S. Atkins said in a statement.
The original rules, approved in March 2024, required virtually all public companies to disclose greenhouse gas emissions, management of climate-related risks, and the financial statement effects of severe weather events in registration statements and annual reports.
The commission said the rules are unnecessary and inconsistent with a registrant-specific, materiality-based approach to disclosure. The proposal also cited concerns that the requirements stray beyond the policy concerns of the federal securities laws and impose substantial costs on public companies and their shareholders.
The proposal is now open for public comment for 60 days following publication in the Federal Register.