A little over two years since they were initially adopted, the SEC has formally proposed to rescind its climate disclosure rules, as noted in this press release. Here’s the 134-page proposing release – and the fact sheet. Here’s a statement from Chairman Atkins.
Last year, the SEC voted to stop defending the rule against court challenges, as noted in this recent blog that recaps the rule’s legal journey since adoption.
The basis for the recission is that they were beyond the scope of the agency’s authority. But as noted in the press release, even if it had statutory authority, this Commission believes there are these independent, compelling policy reasons to rescind them entirely:
- They are unnecessary and inconsistent with a registrant-specific, materiality-based approach to disclosure that best serves the interests of registrants and investors.
- They stray well beyond the policy concerns of the federal securities laws.
- They impose substantial costs on public companies and their shareholders that are not justified by the informational benefits they may provide to some investors.
- They are at odds with the Commission’s policy objectives of facilitating capital formation and promoting public company status.
The comment period is 60 days…
Authored by
Broc Romanek