The Acting Chair of the US Securities and Exchange Commission (SEC) has indicated his intention to delay and potentially roll back a proposed rule requiring climate-related financial risk disclosures from publicly listed companies. Mark Uyeda requested the US Court of Appeals for the 8th Circuit to halt any scheduled arguments on the regulation until the commission had determined appropriate next steps, noting his previous opposition to the “deeply flawed” rule. He said that the SEC’s previous briefs submitted under former chair Gary Gensler, which defended the rule, do not reflect his views. “I continue to question the statutory authority of the commission to adopt the rule, the need for the rule, and the evaluation of costs and benefits,” Uyeda said. He said a delay to legal proceedings against the rule is warranted, given the recent change in the composition of the commission, and President Donald Trump’s memorandum regarding a regulatory freeze. “The SEC has full legal authority to require climate risk disclosures to protect investors and improve market transparency,” said Ben Cushing, Sustainable Finance Campaign Director at Sierra Club, noting that the SEC is an independent regulatory agency. “Rescinding this rule would be a significant setback, further isolating the US on the global stage as climate-related financial risks continue to grow.”
