SEC Moves to Repeal 2024 Climate Disclosure Rule for Thousands of Public Companies
Updated
Updated · The New York Times · May 29
SEC Moves to Repeal 2024 Climate Disclosure Rule for Thousands of Public Companies
3 articles · Updated · The New York Times · May 29
The SEC on Friday proposed scrapping its climate-disclosure rule, which would have required thousands of listed companies to report material climate risks and some climate-related impacts on their business.
The rollback follows the rule’s suspension during litigation and a February directive from then-acting Chair Mark Uyeda to stop defending it against suits from business groups and Republican-led states.
Chair Paul Atkins, sworn in last month after being nominated by President Trump, said the rule exceeded the agency’s legal authority.
Business groups including airlines, oil and gas drillers, farmers, retailers and truckers backed killing or weakening the measure, while climate activists and some ESG-focused companies viewed the move as a setback.
The rule, finalized in March 2024 under former Chair Gary Gensler, never took effect but would have forced companies to disclose exposure to threats such as floods, wildfires, hurricanes and rising seas.
How will companies and investors navigate the growing patchwork of global climate reporting rules without a federal standard?
As the SEC steps back, will California's climate laws become the de facto national standard for US businesses?
From Mandate to Mayhem: How the SEC’s 2024 Climate Disclosure Rule Was Repealed and What It Means for U.S. Companies in 2026
Overview
In May 2026, the U.S. Securities and Exchange Commission (SEC) began the process to repeal its 2024 climate disclosure rules, marking a major policy reversal. This shift followed the SEC's announcement to the Eighth Circuit court that it would reconsider the rules through a public rulemaking process and stop defending them in court. The decision was driven by concerns that the original rules exceeded the SEC’s legal authority and that compliance costs outweighed the benefits. The change in SEC leadership after the presidential administration shift played a key role, with new leaders quickly moving to withdraw support for the rules.