Rescission of ClimateRelated Disclosure

FACT SHEET

Rescission of ClimateRelated Disclosure

Rules

On May 29, 2026, the Securities and Exchange Commission proposed the rescission of

amendments to its rules under the Securities Act of 1933 and Securities Exchange Act of 1934

that require registrants to provide certain climate-related information in their registration

statements and annual reports.

Background

The Commission approved the amendments to its rules by a 3-2 vote on March 6, 2024. The

rule amendments mandate highly specific and granular disclosure about climate-related

matters such as greenhouse gas emissions, management of climate-related risks, and the

financial statement effects of severe weather events. These climate disclosure rules apply

to virtually all public companies.

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Within 60 days of the Commission’s adoption of the rule amendments, various parties

petitioned for judicial review in multiple federal courts of appeals. On March 21, 2024,

these petitions were consolidated for review in the U.S. Court of Appeals for the Eighth

Circuit.

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On April 4, 2024, the Commission entered a stay of the climate disclosure rules pending

completion of judicial review of the consolidated Eighth Circuit petitions.

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On March 27, 2025, the Commission voted to end its defense of the climate disclosure

rules.

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On September 12, 2025, the Eighth Circuit issued an order holding the consolidated

petitions for review in abeyance until such time as the Commission reconsiders the

climate disclosure rules by notice-and-comment rulemaking or renews its defense of

them.

Highlights of the Proposing Release

The Commission has proposed to rescind the climate disclosure rules in their entirety

because they were a dramatic overreach of the Commission’s statutory authority and,

independently, unsound as a matter of policy.

More specifically, the proposing release discusses the scope of the Commission’s

disclosure authority and explains the Commission’s views that the climate disclosure rules

U.S. SECURITIES AND EXCHANGE COMMISSION

FACT SHEET | Rescission of Climate-Related Disclosure Rules

should be rescinded because they exceed the statutory limits on the Commission’s

disclosure authority.

The proposing release also explains the Commission’s views that even if the Commission

had authority to adopt the climate disclosure rules, several independent policy reasons

support their rescission:

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They are unnecessary and inconsistent with a registrant-specific, materiality-based

approach to disclosure.

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They stray well beyond the policy concerns of the federal securities laws.

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They impose substantial costs that are not justified by the informational benefits they

may provide to some investors.

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They are at odds with the Commission’s policy objectives of facilitating capital formation

and promoting public company status.

What’s Next

The public comment period will remain open until 60 days after publication of the proposing

release in the Federal Register.

U.S. SECURITIES AND EXCHANGE COMMISSION

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