WLF Applauds SEC’s Proposal to Rescind Climate-Related Disclosure Rules

“The securities laws do not give the SEC a freestanding mandate to regulate climate policy, and the Commission agrees.”
— Jay DeSanto, WLF Senior Litigation Counsel

Click HERE to read WLF’s comment.

WASHINGTON, DC—Washington Legal Foundation (WLF) today submitted a comment letter supporting the Securities and Exchange Commission’s proposal to rescind its 2024 climate-disclosure rules, which would have exceeded the agency’s authority and raised significant First Amendment concerns.

In March 2024, the Commission issued rules requiring securities registrants to disclose information about greenhouse gas emissions, climate-related risks, and the effects of climate phenomena on their businesses. The rules never took effect and were stayed pending litigation. On May 29, 2026, the Commission announced its proposal to rescind those rules.

WLF welcomes the Commission’s proposal. In its comment, WLF argues that no provision in the securities laws authorizes the Commission to compel extensive disclosures on climate risks or metrics. WLF also warns that the 2024 rules would compel companies to make inherently speculative statements about climate phenomena, implicating the First Amendment’s protections against compelled speech. As WLF’s comment explains, the Commission’s rescission will properly restore disclosure requirements to their core purpose—providing investors with material financial information.