Ginny Roscamp, Deputy Press Secretary, Federal Communications, Sierra Club, ginny.roscamp@sierraclub.org
WASHINGTON, D.C. — The Securities and Exchange Commission (SEC) today voted to end its defense of its climate risk disclosure rule, which would have required companies to report climate-related financial risks and greenhouse gas emissions. The agency’s next step in the process will likely be to remove the rule from the Code of Federal Regulations, which would require a public comment period.
In February, SEC Acting Chair Mark Uyeda requested the U.S. Court of Appeals for the 8th Circuit pause proceedings on the lawsuits challenging the rule, citing the need for further Commission deliberation. Uyeda and Commissioner Hester Peirce — both of whom opposed the rule — currently make up a majority of the Commission.
Meanwhile, California is moving forward with implementing its own climate-related disclosure laws that passed in 2023, which apply to many of the same companies the SEC rule would have covered. Several other states are considering legislation to require similar disclosures.
In response to the news, Ben Cushing, director of the Sierra Club’s Sustainable Finance campaign, issued the following statement:
“Climate change is a growing financial risk, and ending the SEC’s defense of its own climate disclosure rule is a dangerous retreat from investor protection. Letting companies hide climate risks doesn’t make those risks any less real—it just makes it harder for investors to manage them and protect their long-term savings. The SEC is trying to leave investors in the dark at exactly the moment when transparency and action are most needed—but states across the country are stepping up to ensure corporations can’t conceal their climate risks.”
BACKGROUND
The climate disclosure rule (titled “The Enhancement and Standardization of Climate-Related Disclosures for Investors”) was adopted in March 2024 and would require companies to disclose standardized, comparable information to investors about financially material climate-related financial risks.
Industry groups and their political allies immediately filed lawsuits challenging the new requirements. In August 2024, the Sierra Club and other organizations submitted an amicus brief in the 8th Circuit in defense of the SEC's authority to issue the rule, despite some of the ways the originally proposed rule was weakened.
During the rulemaking process, the proposed disclosure requirements garnered overwhelming support from investors. According to an analysis by Ceres, hundreds of institutional investors—representing tens of trillions of dollars in assets under management—commented on the proposed rule with near-unanimous support for the proposed rulemaking, which would have required various climate-related disclosures, including companies’ Scope 1-3 greenhouse gas emissions.
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.