Chairman French Hill, Representative Ann Wagner, and Representative Bill Huizenga expressed approval for the U.S. Securities and Exchange Commission’s (SEC) recent decision to cease defending the Enhancement and Standardization of Climate-Related Disclosures for Investors rules. These rules were initially finalized in March 2024 and had been a point of contention.
The lawmakers issued a joint statement, describing the abandonment of the rule’s defense as “a welcome and long-overdue recognition” that the rule overreached SEC’s authority. They further commented, “Rather than focusing on its core mission—protecting investors, maintaining fair and efficient markets, and facilitating capital formation—the Commission, under former Chair Gensler, pursued a radical climate agenda that stretches the law and imposes significant costs on public companies and investors. This reversal is a victory for common sense, American businesses, and the rule of law. This decision marks a turning point for the SEC to return to its fundamental purpose and stop being used as a political tool to advance policies that properly belong in the legislative branch.”
The contested rule required companies to disclose certain climate-related information within their registration statements and annual reports. It also demanded that registrants provide information regarding climate-related risks affecting their business strategies, which lawmakers argued led to unnecessary expenses.
