SEC proposes rescinding climate disclosure rules in regulatory rollback

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Dan Blystone

29.05.2026

SEC proposes rescinding climate disclosure rules in regulatory rollback — SEC reconsiders climate rules

The U.S. Securities and Exchange Commission is moving to unwind climate-related disclosure requirements adopted in 2024 as it reopens debate over the agency's role in corporate reporting. The proposal reflects a view inside the regulator that mandatory climate reporting extends beyond the SEC's investor-focused mandate and could reshape business decisions outside its statutory authority.

Highlights

The SEC is proposing to rescind the 2024 climate-related disclosure rule, citing concerns over regulatory overreach and requesting public feedback.
Commissioner Hester M. Peirce argues the 2024 rule imposed a prescriptive framework not aligned with informing investors, exceeding the SEC's statutory authority.
The rescission proposal aims to restore a materiality-centric disclosure regime, which Peirce asserts will improve capital allocation and market efficiency.

Regulatory rationale for the proposed reversal

As stated by the U.S. Securities and Exchange Commission, Commissioner Hester M. Peirce supports a proposal to rescind the climate-related disclosure rule adopted in 2024 and says the agency is seeking public feedback on the move.

Peirce says the Commission has struggled with the climate disclosure proposal for years and argues that using securities disclosure as a tool to drive climate policy goes beyond the authority Congress gave the SEC. In her view, the agency's disclosure regime is intended to help investors understand a company's fundamental business and financial characteristics, not to satisfy broader stakeholder demands or direct corporate behavior on environmental issues.

She also says that, although Congress requires the SEC to consider the public interest, that standard must be interpreted through the agency's core mission. Peirce argues that the 2024 rule created a highly prescriptive and expansive disclosure framework for purposes other than informing investors and that the rescission proposal gives the public an opportunity to weigh in on those concerns.

Implications for capital markets and disclosure policy

Peirce frames the rollback as part of a return to what she calls a merit-neutral, materiality-centric disclosure framework. She says that approach is not only more consistent with the SEC's statutory authority, but also healthier for capital markets because it helps capital flow to its highest and best use.

In her statement, she argues that efficient capital allocation supports a broad range of economic and social outcomes, including medical innovation, greener energy, improved infrastructure, cleaner water and air, stronger food systems and better educational tools. If adopted, she says, the rescission would help restore the Commission's disclosure system to its intended purpose and improve how capital markets serve society.

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