SEC tells court it plans to scrap climate reporting rules

illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on ESG Today or enjoy below:

🗞️ Driving the news: The U.S. Securities and Exchange Commission (SEC) has informed the U.S. Court of Appeals that it plans to scrap the climate disclosure rules introduced under the Biden administration in 2024
• The rules had required public companies to report climate risks, mitigation plans, financial impacts of severe weather, and in some cases, operational greenhouse gas emissions

🔭 The context: The SEC initially sought a court ruling on the legality of the rules but was denied, forcing it to reconsider the regulations through a formal notice-and-comment rulemaking process
• This approach involves a public consultation period and could take months to complete, with potential for legal challenges on the final rule

🌍 Why it matters for the planet: Reversing mandatory climate disclosures could reduce transparency on corporate climate risks and emissions, potentially slowing investor pressure and corporate action toward decarbonisation
• It could also undermine progress on corporate contributions to the U.S. climate transition

⏭️ What’s next: The SEC is expected to proceed with the notice-and-comment process, while stakeholders, including investors, climate advocates, and corporations, monitor for potential gaps in climate risk reporting
• The timeline for a finalized rescission remains uncertain

💬 One quote: “Concerns that the Rules exceed the Commission’s statutory authority and the costs of the Rules outweigh their benefits.” — SEC letter to the U.S. Court of Appeals

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