SEC votes to end defence of climate disclosure rules

March 28, 2025

The Securities and Exchange Commission (SEC) will no longer defend regulations requiring companies to disclose climate-related risks and greenhouse gas emissions.

The commission’s two Republicans, acting chair Mark Uyeda and commissioner Hester Peirce voted to end the agency’s legal defence of the rule.

The SEC finalised the rule in March 2024, requiring registrants to disclose certain climate-related information in registration statements and annual reports, but dropped the originally proposed requirement to include Scope 3 emissions.

The rules were first proposed in March 2022, with the SEC initially aiming for them to take effect in December that year. However, lobby groups and Republican state attorney generals repeatedly challenged the rules in court, arguing they exceeded the SEC’s legal authority and would impose undue burdens on businesses.

The SEC faced a self-imposed deadline of March 28 to inform the US Court of Appeals for the Eighth Circuit of its next steps. Last month, the agency had asked the court to hold off on scheduling oral arguments while it weighed its options.

Following the commission’s vote, the SEC informed the court that it was withdrawing its defence of the rules, that its lawyers were no longer authorised to pursue the arguments laid out in its brief, and that it would forfeit its allotted oral argument time.

Uyeda said: “The goal of today’s Commission action and notification to the court is to cease the Commission’s involvement in the defence of the costly and unnecessarily intrusive climate change disclosure rules.”

Minerva’s blog focuses on the latest developments in ESG investing and stewardship. Minerva is a global provider of sustainable stewardship solutions with over 25 years of expertise. Minerva empowers investors by providing essential tools, including ESG research and data, enabling them to navigate the intricate landscape of stewardship and proxy voting, whilst ensuring their decisions are well-informed and aligned with sustainable principles.

You can read more of our articles by clicking here.