SEC Holds Back on Announcing Climate Disclosure Rule Upheld Post Lawsuit Loss
The U.S. Securities and Exchange Commission (SEC) has not confirmed its intention to uphold the climate disclosure rules following the court's ruling on the petitions. Instead, on July 23, 2025, the SEC submitted a status report to the Eighth Circuit stating that it does not intend to review or reconsider the rules "at this time" but asked the court to proceed with litigation and decide the case.
The SEC's stance on the climate disclosure rules has been a subject of debate since their adoption in March 2024. The rules require public companies in the U.S. to provide disclosure on climate risks, plans to address those risks, the financial impact of severe weather events, and, in some cases, greenhouse gas emissions originating from their operations.
However, the SEC's future actions on the matter will be subject to Commission deliberation and vote. In the past, Acting Chairman Mark Uyeda had declared that the Commission would end its legal defense of the rules, a decision that was criticized by Commissioner Caroline Crenshaw. Crenshaw accused the Commission of trying to get around the process required to rescind the rule and suggested that the Commission does not intend to allow the Climate-Related Disclosure Rules to go into effect.
Crenshaw's statement was a response to the SEC's acknowledgement that it has dropped its defense of the rules in the status report. The SEC's decision to withdraw from the defense of the rules came after a series of legal challenges, including a lawsuit against the rule filed by 25 Republican state attorneys general.
Notably, the SEC has declined to commit to adhering to the climate disclosure rules if the petitions for review are denied. Similarly, the SEC has declined to say whether it would uphold the climate disclosure rules if the court rules against the petitions.
In a positive development, however, many states have intervened to defend the SEC's climate disclosure rules. As the court's decision on the petitions is awaited, the SEC is effectively awaiting the judicial outcome and has not committed to enforcing or upholding the climate disclosure rules if the court denies the petitions. The Commission’s position is that the court’s ruling will shape any potential future actions, including possible modification, replacement, or rescission of the rules.
- The SEC's decision not to commit to adhering to the climate disclosure rules has stirred debates within the environmental-science community, with Commissioner Caroline Crenshaw suggesting that the Commission may not intend to allow the rules to go into effect.
- The industry and finance sectors are closely monitoring the unfolding situation regarding the climate disclosure rules, as the SEC's stance on the matter could impact future policy-and-legislation related to climate-change.
- The SEC's position on climate reporting has become a point of interest in various general-news outlets, with many asking whether the Commission will uphold the disclosure rules once the court makes its decision on the petitions.
- The science community and various environmental organizations have expressed concern over the SEC's reluctance to enforce the climate disclosure rules, as they believe such regulations are crucial in addressing the ongoing impacts of climate-change on the environment.
