The Securities and Exchange Commission (S.E.C.) is pausing its defense of a rule requiring companies to make climate disclosures, taking the first step towards rolling back the regulation. Acting Chair Mark Uyeda directed the commission’s legal team to inform a federal appellate court that it would pause its defense.
The climate change disclosure rule, adopted last year, aims to give investors a clearer picture of the risks associated with climate change. However, critics argue that many large companies already provide this information, rendering the rule unnecessary and overly burdensome.
Uyeda stated in a statement that he believed the rule was “deeply flawed” and could harm the economy. He also expressed doubts about the S.E.C.’s authority to pass such a sweeping regulation.
The move comes as part of the Trump administration’s efforts to undo legacy achievements of the most recent S.E.C. chair, Gary Gensler. The S.E.C. recently scaled back its investigation into the crypto industry under Mr. Gensler’s tenure.
Experts say that the action taken by the S.E.C. signals the death knell for the climate change rule. A professor at Columbia Business School noted that the rule would only modestly increase company compliance costs, while making investors more comfortable with their investment in a particular company.
Source: https://www.nytimes.com/2025/02/11/us/politics/sec-climate-disclosure-rule.html