The Securities and Exchange Commission (SEC) has announced it will not defend a rule requiring publicly held companies to disclose climate-related risks, citing concerns over its potential impact on the capital markets and economy.
Acting SEC Chair Mark Uyeda stated that the “Rule is deeply flawed” and could cause significant harm. The rule, finalized in March 2024, required emissions disclosures when the information might affect an investment decision. It passed with a narrow margin of 3-2 along party lines.
The original proposal, made in 2022, would have mandated all public companies to disclose their direct emissions and further details about indirect emissions within supply chains. However, the final rule scrapped requirements for disclosing emissions created by products after they were sold.
Industry groups, including Sen. Mike Rounds (R-S.D.), praised the SEC’s decision, arguing it would have burdened farmers, ranchers, and small businesses with costly reporting requirements. The move marks the latest reversal of environmental policies under the Trump administration, following similar rollbacks in the Interior Department and Environmental Protection Agency.
Source: https://thehill.com/policy/energy-environment/5138697-sec-rejects-climate-disclosure-rule