SEC Proposes Rescinding 2024 Climate-Disclosure Rule

Overview

• The SEC under Chair Paul Atkins formally proposed in early August 2026 to rescind the 2024 rule that would have required large public companies to disclose climate-related financial risk and Scope 1 and 2 emissions, and that rule remains stayed in litigation.
• More than 35 advocacy groups filed a public letter urging the agency to withdraw the rescission proposal on the grounds that it would remove standardized information investors use to compare company climate risk.
• Public pension managers and officials in Democrat-led states and cities warned the proposal would make it harder for retirement systems to assess portfolio risks and to protect beneficiaries’ savings.
• The New Civil Liberties Alliance and allied groups filed comments pressing the SEC to rescind the rule and arguing the agency lacked clear congressional authorization under the Major Questions Doctrine.
• The outcome will hinge on ongoing litigation and rulemaking and could reshape whether securities law alone can require economy-wide climate disclosures or if Congress must act to set a standard.