Client Alert: SEC Ends Defense of Climate Disclosure Rules

On March 27th, the SEC withdrew its defense of the climate disclosure rules, effectively ending its support for the regulations it had issued in 2024.

March 28, 2025 – Yesterday, the U.S. Securities and Exchange Commission (SEC) officially withdrew its defense of the climate disclosure rules, indicating a significant shift in regulatory oversight for climate-related financial reporting.

The rules, adopted on March 6, 2024, mandated that issuing and reporting companies disclose climate-related risks and greenhouse gas emissions. However, these requirements encountered legal challenges from states and private entities, culminating in a consolidated case in the Eighth Circuit (Iowa v. SEC, No. 24-1522). The SEC had previously suspended the rules' implementation pending litigation.

In a statement, SEC Acting Chairman Mark T. Uyeda described the rules as “costly and unnecessarily intrusive” and confirmed that the Commission would no longer support their defense in court. Consequently, SEC counsel has been instructed to withdraw all legal arguments in favor of the rules.

With this decision, businesses should reevaluate their climate disclosure strategies and stay alert for US state and global regulatory changes. KERAMIDA’s experts are closely monitoring developments and can offer guidance on best practices for voluntary and regulatory sustainability reporting requirements.

Contact

Nick McCreary, MS, LEED AP BD+C
Senior Vice President, Sustainability
KERAMIDA Inc.

Contact Nick at: nmccreary@keramida.com