SEC scraps climate rules
The SEC, which made up of three Republican commissioners and no Democrats, issued a statement outlining its plans to scrap the rule.
The rule in question, which passed when the commission had three Democrats and two Republicans, would have required all publicly traded companies to tell investors about ways in which climate change poses significant risks to their business.
It would have also required large companies to disclose information about greenhouse gas emissions directly caused by their business if that information would be likely to influence someone’s decision on whether to invest.
At the time, then-chair Gary Gensler said the move would give investors the ability to clearly compare companies’ contributions to and risks from climate change, which worsens extreme weather.
However, the SEC now describes the rule as going beyond the scope of its authority. It also described the rule as unnecessary, going beyond the policy concerns of securities laws and imposing significant costs on publicly traded companies.
“SEC disclosure obligations should comply with the Commission’s statutory authority, be guided by materiality as the North Star, avoid the practical effect of dictating corporate behavior, and be imposed only when the expected benefits justify the likely costs and burdens,” SEC Chair Paul Atkins said in a statement.