SEC proposes recission of climate disclosure rules

The SEC on Friday took the next step toward formally quashing historic climate disclosure rules that it adopted two years ago.

The commission has officially proposed rescission of the rules, stating in a news release that the decision was aimed at restoring a “materiality-focused” approach to its regulator role.

“SEC disclosure obligations should comply with the commission’s statutory authority, be guided by materiality as the North Star, avoid the practical effect of dictating corporate behavior, and be imposed only when the expected benefits justify the likely costs and burdens,” SEC Chair Paul Atkins said in the release.

The climate reporting rules were adopted in March 2024 and set for implementation in 2025, though they faced hurdles even before the SEC voted to end its legal defense of the rules in March 2025.

The proposed recission will be open for public comment for 60 days following the publication of the proposal in the Federal Register.

— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.