The U.S. Securities and Exchange Commission (SEC) formally proposed on May 29, 2026 to rescind in full the climate-related disclosure rules it adopted in March 2024. The SEC states that the rules exceed its statutory authority and is moving toward complete repeal.
Content of the Rescission
The rescission targets amendments under the Securities Act of 1933 and the Securities Exchange Act of 1934 that required registrants to disclose three categories of information: GHG emissions, climate risk management, and the financial effects of severe weather events. On April 4, 2024, the SEC stayed the rules pending completion of litigation, and this proposal formally advances the subsequent rescission process.
SEC's Argument
SEC Chair Paul Atkins stated that disclosure obligations should be guided by materiality and imposed only when the expected benefits justify the costs. The SEC characterizes the climate disclosure rule as inconsistent with an approach based on company-specific materiality.
Implications for Management and Disclosure
While U.S. federal climate disclosure is retreating, state and regional obligations such as California SB 253 and Europe's CSRD are moving forward. For global companies, rescission of the federal rule does not necessarily translate into a lower disclosure burden; requirements still need to be mapped by applicable state law and extraterritorial regulation. Companies need to respond to a landscape where disclosure rules diverge by jurisdiction.
