SEC Proposes Rescission of 2024 Climate Disclosure Rules

The United States Securities and Exchange Commission submitted a proposal to the White House Office of Management and Budget on May 4, 2026, to formally rescind its 2024 climate-related disclosure rules. The original regulation, titled The Enhancement and Standardization of Climate-Related Disclosures for Investors, required publicly traded companies to report greenhouse gas emissions and environmental impacts to provide investors with reliable data on climate risks.

The 2024 rules, a signature effort of former Chair Gary Gensler, never took effect due to numerous legal challenges from corporate interests and Republican lawmakers. The commission began dismantling the policy in March 2025 when it voted to stop defending the rule in court. The agency now states it intends to return to a materiality-focused approach to securities regulation.

Following the current review by the Office of Management and Budget, the proposal will return to the commission for a vote and a period of public feedback. The Sierra Club condemned the move, arguing that removing the federal baseline for climate information fails to protect investors and ignores the financial materiality of climate risk.