SEC Moves to Rescind Climate Risk Disclosure Rule
Public companies likely face the end of mandatory climate and emissions reporting requirements.
Updated on Oct. 28, 2026 in Public Companies
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Acting SEC Chairman Uyeda directed agency staff on February 11, 2025, to request a pause in the ongoing climate risk disclosure litigation. This move signals an expected effort to rescind the 2024 rule that mandated companies to report climate risks and specific greenhouse gas emissions.
Why it matters
The shift in leadership direction aims to address long-standing concerns regarding the agency's statutory authority and procedural adherence under the Administrative Procedure Act. For businesses, this development likely signals the end of the mandatory climate reporting requirements adopted in March 2024.
The SEC originally adopted the climate disclosure rule in March 2024, imposing requirements for Scope 1 and 2 emissions reporting on public companies. The rule faced consolidated legal challenges in the Eighth Circuit, with current leadership now moving to halt those proceedings.
The players
SEC
The federal agency responsible for regulating securities markets and overseeing corporate disclosure requirements.
Uyeda
The Acting Chairman of the SEC who directed staff to pause litigation over climate risk rules.
Peirce
An SEC Commissioner who opposed the adoption of the climate risk reporting rule.
Crenshaw
An SEC Commissioner who maintains that the agency acted within its remit regarding the rule.
Eighth Circuit Court of Appeals
The federal appellate court currently handling the consolidated legal challenges to the disclosure rule.
The details
The directive from Acting Chairman Uyeda functions as an operational freeze on the rulemaking process. By requesting a delay in the Eighth Circuit Court of Appeals, the agency seeks to create space for the Commission to formally reconsider and likely rescind the mandate. This approach seeks to resolve questions regarding the rule's necessity and the extent of the agency's authority to mandate environmental disclosures from the private sector.
Timeline
March 2024: The SEC adopted the Climate Risk Reporting Rule.
February 11, 2025: Acting Chairman Uyeda issued a statement requesting a delay in pending litigation.
Market Landscape
This pivot reflects a broader focus on the Administrative Procedure Act as a primary mechanism for reversing agency-led regulatory requirements. The move aligns with the current leadership approach to re-evaluate mandates that were finalized in March 2024.
Operators should monitor for a formal notice of rescission to understand if climate-related data collection requirements are permanently set aside. The move removes the immediate operational burden of preparing Scope 1 and 2 emissions reports for the current reporting cycle.
The takeaway
The move underscores the volatility of regulatory requirements that depend on agency leadership transitions. Operators should prioritize tracking official SEC administrative announcements to confirm the formal status of the reporting rule before adjusting their internal compliance systems.
Further reading
For broader trends affecting compliance costs and regulatory reporting, see Public Companies.
Source note: This article includes information reported by Investmentlawwatch.
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