• SEC halts legal defense of climate disclosure rules, effectively ceasing enforcement.
• Decision criticized by investors managing $50 trillion in assets who support climate transparency.
• Move allows courts to end rules without formal rescission by SEC.

The SEC voted today to stop defending its rules requiring companies to disclose climate risks and greenhouse gas emissions.

Acting Chairman Mark T. Uyeda called the disclosure requirements “costly and unnecessarily intrusive.”

“The goal of today’s Commission action and notification to the court is to cease the Commission’s involvement in the defense of the costly and unnecessarily intrusive climate change disclosure rules.” – SEC Acting Chairman Mark T. Uyeda

These climate disclosure rules, originally adopted under former Chair Gary Gensler in March 2024, had faced multiple legal challenges from states and industry groups.

Following today’s decision, SEC counsel informed the Eighth Circuit Court it will no longer defend the rules, relinquishing argument time.

RELATED ARTICLE: US SEC Pauses Climate Disclosure Rule Pending Court Challenge

SEC Commissioner Caroline Crenshaw sharply criticized the Commission’s decision:

“The Commission is hoping to let someone else do their dirty work. The vigorous demand by the investing public for the climate reporting rule has not changed.” – Commissioner Caroline Crenshaw

Investor groups strongly opposed the move, emphasizing the critical need for climate risk transparency:

“Investors have clearly indicated they require better disclosure, with $50 trillion in assets under management broadly supportive of the rule adopted in March 2024. This is clearly a step backward in helping investors and other market participants have the information they need to manage climate-related financial risks.” – Steven M. Rothstein, Managing Director, Ceres Accelerator for Sustainable Capital Markets

The SEC’s withdrawal leaves the future of mandatory climate disclosures uncertain, pending court outcomes.

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