Statement by Acting Chair Uyeda on Climate-Related Disclosure Rules

Today, I am taking action on The Enhancement and Standardization of Climate-Related Disclosures for Investors rule that was adopted by the Commission on March 6, 2024 (the “Rule”). [1] The Rule is currently being challenged in litigation consolidated in the Eighth Circuit [2] and the Commission previously stayed effectiveness of the Rule pending completion of that litigation. [3] The Rule is deeply flawed and could inflict significant harm on the capital markets and our economy.

Both Commissioner Peirce and I voted against the Rule’s adoption. [4] Commissioner Peirce said that then-existing disclosure rules were sufficient and that the “[R]ule’s anticipated benefits do not outweigh the costs.” [5] She argued that “only a mandate from Congress should put us in the business of facilitating the disclosure of information not clearly related to financial returns.” [6] I stated that the Commission was “without statutory authority or expertise” to address climate change issues and that “this [R]ule is climate regulation promulgated under the Commission’s seal.” [7]

During the comment period, many submissions likewise urged that the Rule not be adopted. Among the reasons were that the Rule would require a large volume of financially immaterial information, financially material climate-related risks were already subject to disclosure under existing rules, and the proposed rules overstepped the SEC’s regulatory authority. [8]

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