The U.S. Securities and Exchange Commission (SEC) has informed the U.S. Court of Appeals that it plans to reconsider the corporate climate disclosure rules introduced during the Biden administration.
This follows recent reports, later confirmed by the SEC, that the agency has initiated steps to withdraw the climate reporting regulations. In its letter to the court, the SEC stated that it intends to revisit the rules through a formal “notice-and-comment rulemaking” process. Previously, the Commission had attempted to avoid this process by asking the court to rule on the legality of the regulations after withdrawing its defense against ongoing legal challenges. However, in September 2025, the court rejected the SEC’s request and directed the agency either to reconsider the rules through the standard rulemaking process or continue defending them in court.
The notice-and-comment procedure may take considerable time, as it involves publishing the proposed changes along with legal justifications, inviting public feedback, reviewing and responding to comments, and potentially facing further legal challenges once the final rule is issued.
The climate disclosure rules were originally adopted in 2024 under former SEC Chair Gary Gensler. The regulations introduced climate-related disclosure requirements for U.S. public companies, including reporting on climate risks, mitigation strategies, financial impacts from severe weather events, and, in certain cases, greenhouse gas emissions from operations.
In its latest communication to the court, the SEC stated that it is reconsidering the rules due to concerns that the regulations may exceed the agency’s statutory authority and that the associated compliance costs may outweigh the expected benefits. The SEC also confirmed that it will not defend the existing rules and has submitted a new proposal titled “Rescission of Climate-Related Disclosure Rules” to the U.S. Office of Information and Regulatory Affairs.
