SEC Proposes Rescinding Climate-Related Disclosure Rules

Highlights

• The U.S. Securities and Exchange Commission (SEC or Commission) has proposed a full rescission of its climate-related disclosure rules, originally adopted in March 2024.
• The proposed rescission reflects the current Commission's view that the rules imposed unjustified compliance costs on registrants without providing material benefits to investors and exceeds the authority Congress gave to the SEC.
• Companies that had been preparing for phased compliance should carefully evaluate how this development affects their environmental, social and governance (ESG) disclosure strategies while remaining attentive to state-level and global requirements, as well as evolving investor expectations