SEC Proposes Cancelling Climate Risk Disclosure Rule That Protects People’s Money

(Washington, D.C. – May 29, 2026) The U.S. Securities and Exchange Commission today unveiled a proposal to roll back the Climate Risk Disclosure Rule, which requires large corporations to let investors and the public know about the climate-related financial risks they face. 

“Climate change is causing stronger, more frequent – and more expensive – weather disasters. That’s putting Americans’ money at risk along with their health and safety,” said Stephanie Jones, Senior Attorney for Environmental Defense Fund. “At the same time, clean energy companies are innovating, creating jobs, and saving Americans money. The SEC’s Climate Risk Disclosure Rule makes sure people have information that they need to make important financial decisions. We will vigorously oppose rolling back the rule, which would threaten the financial security of workers and retirees who have their life savings invested in the markets.” 

The Climate Risk Disclosure Rule is part of the longstanding, regularly updated corporate reporting framework that the SEC has maintained for almost 100 years. That framework is designed to standardize the information public companies disclose to investors. Under the rule, registration statements and annual reports would include information about climate-related financial risks along with already-required disclosures about other types of risk. The rule is rooted in clear legal authority and the SEC’s longstanding mission and has strong support from investors and the public.  

EDF and other groups joined states, investors, bipartisan former officials, and others to support the rule against a lawsuit from industry groups in 2024. That case is in abeyance in the U.S. Court of Appeals for the Eighth Circuit. 

The SEC will now hold a 60-day public comment period about its proposal.