Major public investors including pension funds Calpers and Calstrs have clashed with big business lobby groups over the SEC's proposal to rescind a Biden-era climate risk disclosure rule. The regulator, under the Trump administration, called the rule a "dramatic over-reach" of its authority.

Vanguard, with $12tn in assets, sought balance, agreeing policymakers should avoid costly disclosures but noting value in standardized disclosure of material climate risks. Norway's $2tn sovereign wealth fund opposed outright rescission. Several public pension funds opposed the move, including Calpers, Calstrs, and New York comptroller Thomas Di Napoli, who oversees the $294.4bn New York State Common Retirement Fund, warning rescission would create uneven, costly reporting.

Business groups including the Business Roundtable and American Petroleum Institute backed axing the rule, citing compliance burdens. Asset managers split along geographic lines: Federated Hermes' London-based EOS arm supported consistent disclosure, while its Pittsburgh-based business supported rescission. Former SEC commissioner Allison Herren Lee noted investors had supported the original rule.

Despite federal rollback, companies face state-level rules in California, New York, and Maryland. Brooke Lierman, Maryland comptroller, warned the patchwork increases costs, urging one SEC standard. The SEC did not comment.