SEC Proposes Repeal of Climate Risk Disclosure Rules

The United States Securities and Exchange Commission proposed the full rescission of a 2024 regulation on May 29, 2026, which required publicly traded companies to disclose greenhouse gas emissions, climate-related operational risks, and the financial impact of severe weather. The commission characterized the Biden-era requirements as a dramatic overreach of its statutory authority and unsound policy that imposes unjustified costs on shareholders while hindering capital formation.

SEC Chairman Paul S. Atkins argued that the agency must focus on its core mandate and leave environmental oversight to the Environmental Protection Agency. He stated that disclosure obligations should be guided by materiality and must avoid the practical effect of dictating corporate behavior. The proposal follows a March 2025 decision by the commission to stop defending the rules in court against challenges from industrial lobbies and conservative states.

This move aligns with broader environmental rollbacks under the second term of President Donald Trump. Democratic lawmakers and investor advocacy groups criticized the proposal, arguing that climate risks are material financial risks and that the repeal deprives investors of essential data. The proposal will now undergo a 60-day public notice and comment period following its publication in the Federal Register.