The Securities and Exchange Commission formally proposed on Friday to rescind its 2024 rule on climate-related disclosures from publicly traded companies.
The rule, which was adopted in 2024, would have required publicly traded companies to disclose certain information related to climate change.
The SEC’s formal proposal marks a significant step toward eliminating one of the agency’s most closely watched recent regulatory actions.
The 2024 rule had been positioned as a major shift in how public companies would be required to report climate-related risks to investors.
The commission’s move to rescind the rule signals a sharp change in direction for an agency that had previously pushed for greater corporate transparency on environmental matters.
Publicly traded companies that had been preparing to comply with the 2024 requirements now face a shifting regulatory landscape following the SEC’s announcement.
The proposal to ax the rule comes as federal regulators across multiple agencies have revisited and in some cases reversed environmental and disclosure policies.
The SEC’s action drew immediate attention from corporate and financial circles, given the broad scope of companies that would have been affected by the original rule.
The original 2024 rule had been one of the more controversial items on the SEC’s regulatory agenda, drawing both strong support and fierce opposition from various stakeholders.
The commission’s Friday proposal now enters a formal process, during which the public will have the opportunity to weigh in before any final decision is made to officially eliminate the rule.