SEC abandons defense of climate-related disclosure rules, reducing investor access to material information
WASHINGTON – Yesterday, the U.S. Securities and Exchange Commission (SEC) announced it would no longer defend its climate-related disclosure rules in court, following months of litigation. The decision weakens efforts to ensure access to consistent, transparent climate risk information for investors.
“The SEC’s decision to abandon its own climate-related disclosure rule is disappointing,” said Kathy Fallon, Land Systems Director at Clean Air Task Force (CATF).
The SEC’s climate-related disclosure rule, finalized in 2024, requires publicly traded companies to report certain greenhouse gas emissions and provide details on their climate-related financial risks.
“Walking away from these rules means walking away from corporate transparency on how they are managing climate risk,” said Fallon. “The SEC is effectively telling companies they can continue to pick and choose what they disclose, including critical details about their reliance on carbon offsets. This is a major setback for investors and for the integrity of corporate climate claims.”
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About Clean Air Task Force
Clean Air Task Force (CATF) is a global nonprofit organization working to safeguard against the worst impacts of climate change by catalyzing the rapid development and deployment of low-carbon energy and other climate-protecting technologies. With more than 25 years of internationally recognized expertise on climate policy and a fierce commitment to exploring all potential solutions, CATF is a pragmatic, non-ideological advocacy group with the bold ideas needed to address climate change. CATF has offices in Boston, Washington D.C., and Brussels, with staff working virtually around the world. Visit catf.us and follow @cleanaircatf.
