Rajiv Jalim, Global Director of Sustainability Solutions at Novisto, shares his perspective with ESG News on why the SEC’s climate disclosure rollback will not stop the momentum behind corporate sustainability reporting.

The SEC’s proposal to rescind its climate disclosure rules is significant, but it is hardly surprising. Viewed through a political lens, it is consistent with the direction taken by other federal agencies under the Trump administration.

For companies, however, the more important question is whether this changes the direction of sustainability reporting. I don’t think it does.

While some U.S. businesses have adjusted how they talk about sustainability, there is still net positive movement toward climate and ESG disclosure. Companies operating internationally, for instance, must consider regulations and frameworks such as the EU’s Corporate Sustainability Reporting Directive, as well as domestic requirements, including California’s climate disclosure laws. So, while the SEC’s decision is significant, it represents just one part of a much larger reporting landscape.

There is also growing recognition that sustainability data is useful beyond disclosure. Companies are using it to understand climate risk, build financial resilience, inform product development and remain competitive in international markets.

In that sense, the disclosure train has already left the station. Climate-related events such as wildfires, hurricanes and water shortages create real financial costs, regardless of what happens in Washington. Those costs affect insurance, supply chains, operations and long-term planning, which means they are already being discussed in boardrooms.

The SEC proposal may change one reporting requirement, but it does not remove the underlying risks, investor expectations or international obligations. Companies that have invested in credible sustainability data are therefore unlikely to abandon that work. Instead, the focus will continue to move beyond compliance alone toward how that information can support better business decisions and improved financial performance. 

Rajiv Jalim

Rajiv Jalim is the Global Director of Sustainability Solutions at Novisto, where he helps organizations leverage technology and data to advance their sustainability strategies, reporting, and disclosure programs. With more than a decade of experience in sustainability consulting, strategy, and program management, he has worked with organizations across sectors including biotechnology, energy, agriculture, manufacturing, transportation, and healthcare, supporting sustainability initiatives throughout North America, Europe, Asia, and the Middle East.