SEC Proposes Rescinding Climate Disclosure Rules

CHICAGO, IL / ACCESS Newswire / June 12, 2026 / Authored by Baker Tilly's Debbie Biddle-CastilloThe U.S. Securities and Exchange Commission (SEC) has proposed rescinding its 2024 climate-related disclosure rules, which were stayed before taking effect. If finalized, the proposal would eliminate the disclosure requirements contained in the rule.What happenedOn May 29, 2026, the SEC proposed rescinding the climate-related disclosure rules it adopted in March 2024. The proposal would remove the rule in its entirety, including requirements related to climate-related risks and greenhouse gas (GHG) emissions disclosures in SEC filings.The SEC has opened a 60-day public comment period before determining whether to finalize the rescission.The 2024 climate disclosure rule never became effective. Following its adoption, multiple legal challenges were filed and the SEC stayed implementation pending judicial review. In March 2025, the SEC voted to cease defending the rule in litigation.Who is affectedThe proposal affects public companies that would have been subject to the 2024 climate-related disclosure requirements. It is also relevant to investors, boards of directors, audit committees and corporate reporting functions responsible for SEC disclosures.TimingThe proposed rescission was issued on May 29, 2026.The SEC is accepting public comments for 60 days following publication of the proposal in the Federal Register. After reviewing comments received, the Commission will determine whether to adopt a final rule rescinding the 2024 climate disclosure requirements.Until that process is complete, the 2024 rule remains stayed and has not taken effect.What you need to knowThe proposal would rescind all provisions of the 2024 climate-related disclosure rule. In the proposing release, the SEC stated that it believes the rule exceeded the agency's statutory authority and imposed costs that were not justified by the anticipated benefits.The proposed rescission would not affect existing SEC disclosure requirements that require registrants to disclose material information, including material risks when applicable. It also would not affect climate-related reporting requirements established under state laws, international regulations or other regulatory frameworks.Regulatory statusThe proposal is not yet final. The SEC will review public comments before determining whether to adopt the rescission.If finalized, the action would formally withdraw the 2024 climate-related disclosure rule, which has remained stayed since shortly after its adoption.Looking for guidance on your ESG journey? Connect with a Baker Tilly specialist.Find more stories and multimedia from Baker Tilly at 3blmedia.com.Contact Info:Spokesperson: Baker TillyWebsite: https://www.3blmedia.com/profiles/baker-tilly Email: info@3blmedia.comSOURCE: Baker TillyView the original press release on ACCESS Newswire

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