Federal Climate Change Disclosures No More

In a move that perhaps comes as no surprise, on March 27, 2025, the Securities and Exchange Commission (“SEC” or “the Commission”) issued Press Release 2025-58 announcing it had voted to end its defense of its climate-related disclosures rules (The Enhancement and Standardization of Climate-Related Disclosures for Investors). The announcement comes on the heels of SEC Acting Chairman Mark T. Uyeda’s statement on February 11, 2025, where he requested the Eighth Circuit hold off scheduling oral argument in the consolidated appeals challenging the rules in order to allow the Commission “to deliberate and determine the appropriate next steps.” The SEC’s decision to abandon its defense of the rules, paired with the ongoing stay of those rules pending judicial review, means that the rules are not, and likely will never be, effective.

The SEC finalized the climate-related disclosures rules in March 2024, and they were immediately challenged. Shortly thereafter, the Commission chose to administratively stay the effectiveness of the rules pending completion of the various challenges against them. With the change in presidential administrations, and the stepping down of former SEC Chairman Gary Gensler in January 2025, it was anticipated that the Commission would repeal, revoke, or amend the rules.

SEC Acting Chairman Uyeda opposed the adoption of the rules alongside Commissioner Hester Peirce, noting that the SEC is “without statutory authority or expertise” to address climate change issues. Following the vote yesterday, the SEC sent a letter to the Eighth Circuit withdrawing both its defense of the rules and authorization of its counsel to advance the arguments in the brief the Commission had filed in the case (completed before the change in presidential administrations). The Commission explained that the Eighth Circuit “would not need to reach the petitioners’ challenges based on the First Amendment or non-delegation doctrine if [the court] sets the [r]ules aside on other grounds.” The SEC yielded any oral argument time back to the Court. SEC Acting Chairman Uyeda, in comments accompanying Press Release 2025-58, noted that the rules were both “costly” and “unnecessarily intrusive.” Per the letter to the Eighth Circuit, “a majority of the current Commissioners voted against the rules.”

Although the SEC’s climate-related disclosures rules are no more, companies may still be subject to other disclosure regimes. For example, those companies with global operations and/or a presence in Europe will be subject to the Corporate Sustainability Reporting Directive, although admittedly a pared-back version following the recently proposed Omnibus Package to simplify and delay the reporting requirements. And, for those companies that “do business” in California, they may still be subject to the Climate Corporate Data Accountability Act and the Climate-related Financial Risk Act pending the outcome of litigation there.

We will continue monitoring such developments regarding climate-related disclosure requirements. Please reach out to your Vinson & Elkins team to discuss these matters further and the potential implications on your business.

This information is provided by Vinson & Elkins LLP for educational and informational purposes only and is not intended, nor should it be construed, as legal advice.