Overview
- The SEC proposed rescinding the 2024 climate-disclosure rule on Friday, May 29, 2026, and opened a 60-day notice-and-comment period before any final action.
- The agency said the rule exceeded its statutory authority, conflicted with a materiality-based disclosure standard, and imposed substantial compliance costs on companies and shareholders.
- The 2024 rule, adopted under Chair Gary Gensler but never taken into effect because of immediate litigation and a court stay, would have required governance disclosures, select financial impacts, and Scope 1 and Scope 2 emissions reporting.
- Investor-protection and environmental advocates warned the proposal would remove information investors use to assess climate-related financial risk, while industry groups and conservative advocates praised the move as reducing regulatory burdens.
- Even if the SEC finalizes rescission, companies may still face climate-reporting demands from California law and international regimes such as the EU’s Corporate Sustainability Reporting Directive, creating a patchwork of rules and possible information gaps for investors.