SEC proposes rescission of climate rules

The Securities and Exchange Commission proposed repealing rules that require public companies to provide certain climate-related information in their registration statements and annual reports.

Background: Issued in March 2024, the rule requires SEC registrants to disclose material climate-related risks, activities to mitigate or adapt to such risks, board oversight, and greenhouse gas emissions that reporting companies produce or indirectly cause by their activities.

Proposed Rescission: The SEC said it is proposing to rescind the climate disclosure rules because they exceed the scope of the agency's statutory authority. The comment period will remain open for 60 days following the publication of the proposing release in the Federal Register.

ICBA Advocacy:

• ICBA in 2025 commended the SEC for ending the defense of its rule, citing its damaging impact on the capital markets, community banks, and the customers they serve.

• In a national news release after the SEC issued its final rule, ICBA in 2024 criticized the rule’s unprecedented costs and potential liabilities.

• In a 2022 comment letter, ICBA said the rule would drive many SEC-registered community banks away from the public capital markets.