Corporate & Securities Blog

On May 4, 2026, the SEC took the first step toward undoing its dormant 2024 climate-related disclosure rules, submitting a proposed recission to the White House’s Office of Information and Regulatory Affairs (OIRA) for review.

The climate rules, which require public companies to report material climate-related risks, greenhouse gas emissions, and climate-related spending, have never been implemented: the SEC voluntarily stayed them amid a wave of legal challenges and stopped defending the rules altogether in March 2025 following President Trump’s return to office earlier that year. The Eighth Circuit Court of Appeals then suspended consideration of the climate rules litigation indefinitely. In a statement, the SEC explained its focus on returning the agency to its “core mandate” and “restoring a materiality-focused approach to securities regulation.”

While the timeline for final action remains uncertain—OIRA must complete its review before the SEC can vote to propose the recission and open a public comment period—the trajectory is clear. Critics, including several current administration officials, argue the SEC overstepped its legal authority with the climate rules. Issuers should continue to monitor developments, including the scope of the proposed recission, as well as the timing of any additional rulemaking, and KMK will provide updates as the SEC’s move to rescind the climate disclosures progresses.