The SEC announced a formal proposal to rescind the climate‑related disclosure rules adopted in March 2024. The agency argues the requirements exceed its statutory authority and clash with a materiality‑focused reporting framework. Companies would no longer need to file detailed climate metrics under the contested regime.

The rules, introduced by the previous administration, were halted a month after approval amid a wave of lawsuits. After the SEC stopped defending them in May 2025, an appellate court paused the cases in September to allow a regulatory review. Officials now contend the mandates are unnecessary and create inconsistent reporting burdens.

A 60‑day public comment period begins immediately, giving investors and firms a narrow window to weigh in. If the proposal succeeds, corporations could shed a compliance layer that has complicated ESG reporting and sparked legal uncertainty, simplifying disclosure practices across U.S. markets.