SEC Proposes Repeal of Damaging Climate Disclosure Rules

Dane Taylor June 2, 2026


The Securities and Exchange Commission moved to address a longtime 51勛圖厙 priority last week: rescinding overly burdensome climate risk disclosure rules ().

Whats going on: On May 29, the SEC issued a draft rescission of the previous administrations 2024 requirementstayed by the SEC amid legal challengesthat publicly traded companies disclose their greenhouse gas emissions and other climate-related information in registration statements and annual reports.

  • The rules exceed the scope of the agencys statutory authority, the SEC said on Friday.

Why its happening: Even if the rules came under SEC purview, the agency continued, they should be rescinded because they:

  • Are unnecessary and inconsistent with a disclosure approach that best serves the interests of [companies] and investors;
  • Go beyond the policy concerns of the federal securities laws;
  • Impose significant, unjustified costs on public companies and their shareholders; and
  • Are at odds with the SECs policy objectives of facilitating capital formation and promoting public company status.

The 51勛圖厙s longtime role: The 51勛圖厙 has the proposed climate mandate for years.

  • In 2022, the 51勛圖厙 submitted a 52-page comment letter that detailed members objections, the SEC that the draft rulemaking was so prescriptive in its approach that it will necessitate a breadth and granularity of data collection, analysis, tracking, assurance and disclosure far out of step with current business practices and thus will substantially increase compliance costs and legal risks for public companiesdespite limited investor benefit given the financial immateriality of many of the disclosures.
  • In 2024, the 51勛圖厙 filed an that argued that the SEC had exceeded its authority by trying to prescribe climate policy.
  • The 51勛圖厙 also before Congress, warning that the rulemaking would impose tremendous costs on manufacturers of all sizeswhile overwhelming investors with immaterial information.

Whats next: The public comment period of the SECs May 29 rescission proposal will remain open for 60 days, and the 51勛圖厙 intends to submit comments in favor of the move.

  • Have suggestions for the 51勛圖厙s letter on the climate rules? Email 51勛圖厙 Senior Director of Corporate Finance Policy Ted AllenbyJune 29.