By Douglas Gillison
WASHINGTON, May 29 (Reuters) – The U.S. Securities and Exchange Commission on Friday said it was proposing to do away with dormant regulations adopted under former President Joe Biden that require companies to disclose their climate-related risks and spending, part of a government-wide retrenchment of climate policy since President Donald Trump returned to office last year.
The rule, which was adopted in 2024 but had yet to take effect due to intense legal opposition from industrial lobbies and conservative-leaning states, was intended to address mounting investor demand for consistent information about the buildup of climate-related risks in the financial system and costs to companies in adapting and responding to the climate crisis.
SEC Chair Paul Atkins said Friday in a statement the agency should only require disclosures of information that is material to investors and does not dictate corporate behavior, and “only when the expected benefits justify the likely costs and burdens.”
SEC officials also said the agency now believed the rule was outside the agency’s authority, imposed substantial costs on companies and could discourage capital formation.
In a statement, Benjamin Schiffrin, head of securities policy at Better Markets, which advocates for tougher policing of Wall Street and stronger investor protections, said the decision was part of what he called the SEC’s “assault on investors.”
“The risks public companies face matter to investors, and the SEC’s proposal fails to acknowledge that climate-related risks are no exception,” said Schiffrin.
The proposal is now subject to a two-month period of public notice and comment prior to any final decision from the SEC.
(Reporting by Douglas Gillison in Washington; Editing by Chizu Nomiyama )
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