The US Securities and Exchange Commission has indicated it plans to rescind its controversial 2024 climate disclosure regime after legal and policy concerns, signalling a significant shift in US environmental regulation.
The US Securities and Exchange Commission has moved a step closer to scrapping its climate disclosure regime, telling the Eighth Circuit Court of Appeals that it has drafted a proposal to rescind the rules adopted in 2024 and no longer intends to defend them.
In a letter filed on 7 May, the agency said the draft rule had already been sent to the White House’s Office of Information and Regulatory Affairs for review. It said the plan is aimed at resolving what it described as legal and policy concerns, including whether the commission went beyond its statutory powers and whether the compliance burden outweighs the benefits for investors.
The move marks a sharp reversal for a rulemaking that was billed last year as an effort to standardise climate-related reporting for public companies. The SEC adopted the framework in March 2024, requiring listed companies to disclose material climate risks, the effect of those risks on strategy and operations, and, in some cases, greenhouse gas emissions data. The package was designed to give investors more comparable information on how climate change could affect financial performance.
But the rules were immediately met with litigation from a coalition of states and business groups arguing that the commission had overreached. The case was consolidated in the Eighth Circuit, which paused the proceedings while the SEC reconsidered its position.
The agency had already signalled a retreat in March 2025, when it voted to end its defence of the rules and withdrew its lawyers’ authority to argue the case. That change followed the shift in leadership after the January 2025 transition and effectively left the future of the disclosure regime in doubt.
For companies in carbon-intensive sectors, the latest filing adds another layer of uncertainty to a compliance landscape already shaped by other mandatory climate-reporting regimes in the US and overseas. Even if the SEC’s proposal is ultimately finalised, businesses may still need to navigate state-level requirements, investor demands and disclosure rules from other jurisdictions.
The Eighth Circuit had previously kept the petitions on hold while awaiting clearer direction from the commission. In its latest filing, the SEC said it would continue to update the court as the rulemaking progresses, signalling that the legal battle may not be over even if the agency abandons the climate standard it adopted just over a year ago.
- https://www.vitallaw.com/news/public-company-reporting-and-disclosure-sec-moves-to-rescind-controversial-climate-disclosure-rules/sld01c2cf3ee64a7c4144aa8c1cc690aee941?refURL=https%3A%2F%2Fnews.google.com%2F#. – Please view link – unable to able to access data
- https://www.sec.gov/newsroom/press-releases/2024-31 – On March 6, 2024, the SEC adopted rules to enhance and standardize climate-related disclosures for investors. These rules require public companies to disclose material climate-related risks, their impact on business strategy, and governance processes. The disclosures aim to provide investors with consistent, comparable, and reliable information about the financial effects of climate-related risks on a registrant’s operations and how it manages those risks, while balancing concerns about mitigating the associated costs of the rules.
- https://www.sec.gov/newsroom/press-releases/2025-58 – On March 27, 2025, the SEC voted to end its defense of the rules requiring disclosure of climate-related risks and greenhouse gas emissions. The Commission notified the court that it withdraws its defense of the rules and that Commission counsel are no longer authorized to advance the arguments in the brief the Commission had filed. The letter states that the Commission yields any oral argument time back to the court.
- https://www.foley.com/insights/publications/2024/04/sec-voluntarily-final-rule-climate-disclosures/ – On April 4, 2024, the SEC issued an order staying the Final Rule for the Enhancement and Standardization of Climate-Related Disclosures for Investors. The stay will remain in place until the completion of litigation filed in the federal courts that challenges the agency’s authority to adopt the Final Rule. The SEC’s administrative stay will remain in place until the completion of litigation filed in the federal courts that challenges the agency’s authority to adopt the Final Rule.
- https://www.jonesday.com/en/insights/2024/03/sec-finalizes-climate-disclosure-rules – The SEC has adopted the much-anticipated climate-related disclosure rules, which are almost 900 pages long, two years after they were first proposed. Although the rules will almost certainly face challenges in court that could impact the ultimate timing and scope of their application, registrants should prioritize familiarizing themselves with the rules as the first compliance period rapidly approaches in 2025, especially in light of divergent requirements under other mandatory disclosure programs to which registrants may be subject.
- https://www.loeb.com/en/insights/passle/2024/04/sec-issues-a-stay-on-the-newly-adopted-climaterelated-disclosure-rules – On April 4, 2024, the SEC issued an order staying the newly adopted climate-related disclosure rules pending the resolution of the cases that have been consolidated in the U.S. Court of Appeals for the Eighth Circuit which challenge the validity of the requirements. Therefore, companies will not be required to comply with the climate-related disclosure requirements unless the proceedings are resolved in the SEC’s favor.
- https://www.sec.gov/rules-regulations/2024/03/s7-10-22 – The SEC has adopted amendments to its rules under the Securities Act of 1933 and Securities Exchange Act of 1934 that will require registrants to provide certain climate-related information in their registration statements and annual reports. The final rules will require information about a registrant’s climate-related risks that have materially impacted, or are reasonably likely to have a material impact on, its business strategy, results of operations, or financial condition.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
7
Notes:
The article reports on the SEC’s recent move to rescind its climate disclosure rules, with a filing submitted to the Office of Information and Regulatory Affairs (OIRA) on May 4, 2026. ([jdsupra.com](https://www.jdsupra.com/legalnews/sec-moves-to-formally-rescind-climate-9710218/?utm_source=openai)) This development is corroborated by other sources, such as Known Trends, which reported on May 5, 2026. ([knowntrends.com](https://www.knowntrends.com/2026/05/climate-related-disclosure-rules-update-sec-submits-rescission-proposal-to-oira-for-review/?utm_source=openai)) However, the article’s publication date is not specified, making it difficult to assess its freshness. Given the recent nature of the event, the content appears to be original and timely. Nonetheless, the lack of a clear publication date introduces some uncertainty regarding its freshness. Additionally, the article includes a link to a press release from the SEC dated March 27, 2025, which is over a year old and pertains to the SEC’s decision to end its defense of the climate disclosure rules. ([sec.gov](https://www.sec.gov/newsroom/press-releases/2025-58?utmsource=chatgpt.com&utm_source=openai)) This inclusion may indicate that parts of the article are recycled from previous sources. Therefore, while the main content seems current, the presence of older material and the unspecified publication date warrant a cautious approach.
Quotes check
Score:
6
Notes:
The article includes a direct quote from SEC Chair Paul Atkins regarding the agency’s decision to rescind the climate disclosure rules. However, this quote is not attributed to a specific source or date, making it challenging to verify its authenticity. Without the ability to cross-reference this quote with other reputable sources, its accuracy remains uncertain. Therefore, the unverifiable nature of the quote raises concerns about the reliability of the information presented.
Source reliability
Score:
5
Notes:
The article originates from a website named ‘Known Trends,’ which appears to be a niche publication. The lack of information about the publication’s editorial standards, ownership, and history makes it difficult to assess its credibility. Without clear evidence of the publication’s reliability, the source cannot be fully trusted. Additionally, the article includes a link to a press release from the SEC dated March 27, 2025, which is over a year old and pertains to the SEC’s decision to end its defense of the climate disclosure rules. ([sec.gov](https://www.sec.gov/newsroom/press-releases/2025-58?utmsource=chatgpt.com&utm_source=openai)) This inclusion may indicate that parts of the article are recycled from previous sources, potentially affecting the originality and reliability of the content.
Plausibility check
Score:
8
Notes:
The article reports on the SEC’s recent move to rescind its climate disclosure rules, a development that aligns with previous actions taken by the SEC, such as the decision to end its defense of the rules in March 2025. ([sec.gov](https://www.sec.gov/newsroom/press-releases/2025-58?utmsource=chatgpt.com&utm_source=openai)) The inclusion of a press release from the SEC dated March 27, 2025, further supports the plausibility of the reported events. However, the lack of a clear publication date for the article introduces some uncertainty regarding its timeliness. Therefore, while the content appears plausible, the unspecified publication date warrants a cautious approach.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article reports on the SEC’s recent move to rescind its climate disclosure rules, a development that aligns with previous actions taken by the SEC. However, the lack of a clear publication date, the inclusion of older material, and the unverifiable nature of the quoted statements raise significant concerns about the content’s freshness, originality, and reliability. Given these issues, the article does not meet the necessary standards for publication.
