On May 29, 2026 the Securities and Exchange Commission (SEC) issued a proposal to fully rescind the climate-related disclosure rules it had previously approved in March 2024. The original 2024 rules mandated that public companies provide detailed, granular information regarding greenhouse gas emissions, climate risk management, and the financial impacts of severe weather events.
SEC Chairman Paul S. Atkins cited several key reasons for the rescission, including:
- Statutory Authority: The SEC states that the 2024 rules exceed the agency’s legal mandate.
- Return to “Materiality”: The Commission wants to refocus on a registrant-specific, materiality-based approach to regulation rather than dictating corporate behavior on climate issues.
- Cost vs. Benefit: The agency determined that the rules impose substantial, unjustified costs on public companies and shareholders relative to the information benefits they provide.
- Capital Formation: The SEC argues the rules conflict with its core objectives of facilitating capital formation and encouraging companies to go public.
The climate rules have been stayed since April 2024 due to consolidated litigation in the U.S. Court of Appeals for the Eighth Circuit, and the SEC voted to stop defending them in March 2025.
The SEC’s proposal is currently awaiting official publication in the Federal Registrar. Once published, the public, industry groups, and investors will have 60 days to submit formal feedback on the rescission.