The U.S. Securities and Exchange Commission announced a proposal to rescind the 2024 climate‑risk filing requirement, calling it a “dramatic over‑reach.” The rule would have forced virtually all public firms to disclose direct emissions and Scope 2 energy use, but litigation by Republican states and trade groups kept it on hold. SEC chair Paul Atkins framed the change as a step to lower compliance costs and make public markets more attractive.

A 60‑day comment period opens, after which the commission may revise or formally repeal the rule. Critics argue the repeal will strip investors of material climate data, while business groups praise the return to a materiality‑focused approach. The Chamber’s Mike Flood highlighted that the move aligns disclosure with genuine business risk, not a blanket mandate.

Companies already subject to state or foreign mandates—such as California’s 2023 law or the EU’s Corporate Sustainability Reporting Directive, which applies to firms with $175 million in EU revenue—must continue reporting. The SEC maintains that firms with material climate exposure can still disclose risks in their standard financial statements, but it rejects a costly, universal filing process.