SEC moves to rescind 2024 climate disclosure rules

The U.S. Securities and Exchange Commission announced the rescission of the climate‑related disclosure rules adopted in March 2024. Although the agency will no longer enforce the rules, existing antifraud principles still apply to ESG statements, meaning companies and boards may face continued litigation risk. The loss of a uniform federal framework could increase uncertainty about what information is material and where it must be disclosed, potentially expanding directors‑and‑officers (D&O) liability.

Seventeen state financial officials have signed a letter urging the SEC to scrap the rules, arguing they impose costly reporting requirements and represent an unlawful expansion of the administrative state. They estimate that rescinding the rules could save about $4.9 billion annually and roughly $7.9 billion in total costs. The rules were never enforced after a stay was made permanent following the 2024 election, and Acting Chairman Mark Uyeda declined to defend them in March 2025. The combined regulatory shift and state pressure highlight ongoing fragmentation in U.S. climate‑related reporting and the continued exposure of firms to ESG‑related legal challenges.