{"id":366258,"date":"2025-02-15T19:14:23","date_gmt":"2025-02-15T18:14:23","guid":{"rendered":"https:\/\/climatescience.press\/?p=366258"},"modified":"2025-02-15T19:14:25","modified_gmt":"2025-02-15T18:14:25","slug":"sec-chair-revokes-illegal-climate-disclosure-rule","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=366258","title":{"rendered":"SEC Chair Revokes Illegal Climate Disclosure\u00a0Rule"},"content":{"rendered":"\n
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From Science Matters<\/a><\/p>\n\n\n\n

By\u00a0Ron Clutz<\/a><\/p>\n\n\n

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Jon McGowan reports at Forbes Acting SEC Chair Says Climate-Related Disclosure Rule Is Illegal. <\/strong><\/a> Excerpts in italics with my bolds and added images.<\/p>\n\n\n\n

Background<\/strong><\/h4>\n\n\n\n

Following the Paris Agreement in 2015, a series of global initiatives<\/strong> were pursued to reduce the impacts of climate change and reduce overall greenhouse gas emissions to \u201cnet zero\u201d by 2050. The goal<\/strong> included a significant reduction in GHG emissions, but also utilized \u201coffsets\u201d<\/strong> that, through technology and protection of natural resources, would result in overall emissions being at a net of zero. This resulted in a carbon credit market<\/strong> that allowed high GHG emitting countries and businesses to purchase credits from underdeveloped countries that produce little emissions.<\/em><\/p>\n\n\n

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On the financial side, a multi-prong approach was used to influence and regulate businesses. Large\u00a0investment firms,\u00a0like BlackRock<\/a>, used their influence to drive\u00a0<\/strong>ESG and sustainability. By 2021, it was standard practice for businesses to release\u00a0annual ESG and sustainability reports.<\/strong>\u00a0However, there was no standardization of the practice.\u00a0Claims were unregulated and<\/strong>\u00a0content was unclear. As a result, reports were focused on what the business thought mattered to investors and were\u00a0little more than marketing pieces.<\/strong><\/em><\/p>\n\n\n

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This became problematic in the highly regulated financial industry. Funds that claim to be ESG, green, climate friendly, or sustainable must back up those claims with data. As a result of demand and Paris Agreement based initiatives,\u00a0international regulators began drafting standards for reporting,<\/strong>\u00a0marketing, and investments relating to climate change and other green initiatives.<\/em><\/p>\n\n\n

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In 2021, the International Sustainability Standards Board drafted the International Financial Reporting Standards Foundation\u2019s Sustainability Disclosure Standards. IFRS<\/strong> is an independent, nonprofit organization that develops financial reporting standards, including international accounting standards. IFRS is not used in the U.S.,<\/strong> who uses generally accepted accounting principles, also known as GAAP, but is used in 132 jurisdictions.<\/strong> The IFRS Standards were adopted in June 2023 as the global standard for sustainability and climate change reporting, including greenhouse gas emissions.<\/em><\/p>\n\n\n\n

The US Securities Exchange Commission Story Regarding ESG<\/strong><\/h4>\n\n\n\n
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Rough Seas for Captains of Industry<\/strong><\/em><\/figcaption><\/figure>\n<\/div>\n\n\n

Under<\/strong> the leadership of Gary Gensler<\/strong>, the U.S. Securities and Exchange Commission saw a wave of regulatory and enforcement actions<\/strong> relating to environmental, social, and governance; sustainability; and climate change. It was clear that his exit, effective the day President Trump took office<\/strong>, would significantly alter the SEC\u2019s approach to those topics<\/a>.<\/em><\/p>\n\n\n\n

On February 11, acting SEC Chair Uyeda, a Biden appointee, effectively ended the Climate-Related Disclosure Rule. In the statement, Uyeda said<\/a>,<\/strong><\/em><\/p>\n\n\n\n

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\u201cThe Rule is deeply flawed and could inflict significant harm<\/strong> on the capital markets and our economy.\u201d<\/em><\/p>\n\n\n\n

\u201cBoth Commissioner Peirce and I voted against the Rule\u2019s adoption.<\/strong> Commissioner Peirce said that then-existing disclosure rules were sufficient and that the \u2018[R]ule\u2019s anticipated benefits do not outweigh the costs.\u2019 She argued that \u2018only<\/strong> a mandate from Congress<\/strong> should put us in the business<\/strong> of facilitating the disclosure of information not clearly related to financial returns<\/strong>.\u2019 I stated that the Commission was \u2018without statutory authority or expertise\u2019 to address climate change issues<\/strong> and that \u2019this [R]ule is climate regulation promulgated under the Commission\u2019s seal.\u2019\u201d<\/em><\/p>\n\n\n\n

\u201cThe Commission\u2019s briefs previously submitted in the cases consolidated in the Eighth Circuit do not reflect my views\u2026 I also question whether the agency followed the proper procedures under the Administrative Procedure Act to adopt the Rule.\u201d<\/strong><\/em><\/p>\n<\/blockquote>\n\n\n\n

As a result, Acting Chair Uyeda has asked the court for a\u00a0delay<\/strong>\u00a0in the proceedings while the SEC takes action to roll back the Climate-Related Disclosure Rule.<\/strong>\u00a0As a result, climate reporting at the national level is effectively dead. The focus now turns to the states and international actions.<\/em><\/p>\n\n\n

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<\/p>\n","protected":false},"excerpt":{"rendered":"

Following the Paris Agreement in 2015, a series of global initiatives\u00a0were pursued to reduce the impacts of climate change and reduce overall greenhouse gas emissions to \u201cnet zero\u201d by 2050. The\u00a0goal\u00a0included a\u00a0significant reduction in GHG emissions, but also utilized \u201coffsets\u201d\u00a0that, through technology and protection of natural resources, would result in overall emissions being at a net of zero. This resulted in a\u00a0carbon credit market\u00a0that allowed high GHG emitting countries and businesses to purchase credits from underdeveloped countries that produce little emissions.<\/p>\n","protected":false},"author":121246920,"featured_media":366274,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691833310,691818463,691820492,691833309],"class_list":{"0":"post-366258","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-climate-related-disclosure-rule","9":"tag-ghg-emissions","10":"tag-paris-agreement","11":"tag-u-s-securities-and-exchange-commission-sec","13":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/02\/02023-03-10T051109Z_5_LYNXMPEJ280TW_RTROPTP_4_FINTECH-CRYPTO-SEC-scaled-1.jpg?fit=2560%2C1707&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1xho","jetpack-related-posts":[{"id":350682,"url":"https:\/\/climatescience.press\/?p=350682","url_meta":{"origin":366258,"position":0},"title":"The Climate Road to Serfdom in One Graph","author":"uwe.roland.gross","date":"09\/11\/2024","format":false,"excerpt":"Dr. Faig S Askerov, (self-described as the Former Regulatory Compliance and Environment Director, BP Azerbaijan, Georgia, and Turkey Region, PhD in Petrochemistry Scientist, Lecturer) has\u00a0presented\u00a0a graph and definitions that can be used as \u201cExhibit A\u201d against the climate road to serfdom. At a time of political change\u00a0against\u00a0climate alarmism\/forced energy transformation,\u2026","rel":"","context":"In \"carbon dioxide (CO2)\"","block_context":{"text":"carbon dioxide (CO2)","link":"https:\/\/climatescience.press\/?tag=carbon-dioxide-co2"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/11\/00greennewdeal.jpg?fit=1200%2C800&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/11\/00greennewdeal.jpg?fit=1200%2C800&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/11\/00greennewdeal.jpg?fit=1200%2C800&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/11\/00greennewdeal.jpg?fit=1200%2C800&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/11\/00greennewdeal.jpg?fit=1200%2C800&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":369007,"url":"https:\/\/climatescience.press\/?p=369007","url_meta":{"origin":366258,"position":1},"title":"SEC\u2019s Climate Risk Disclosure Rule Would Compel Companies to Make Scientifically False and Misleading Disclosures","author":"uwe.roland.gross","date":"07\/03\/2025","format":false,"excerpt":"In March last year, the Securities and Exchange Commission issued its climate risk disclosure rule, called \u201cThe Enhancement and Standardization of Climate-Related Disclosures for Investors.\u201d\u00a0","rel":"","context":"In \"carbon dioxide (CO\u2082)\"","block_context":{"text":"carbon dioxide (CO\u2082)","link":"https:\/\/climatescience.press\/?tag=carbon-dioxide-co%e2%82%82"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/03\/0Securities-and-Exchange-Commission-SEC.webp?fit=1200%2C719&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/03\/0Securities-and-Exchange-Commission-SEC.webp?fit=1200%2C719&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/03\/0Securities-and-Exchange-Commission-SEC.webp?fit=1200%2C719&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/03\/0Securities-and-Exchange-Commission-SEC.webp?fit=1200%2C719&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/03\/0Securities-and-Exchange-Commission-SEC.webp?fit=1200%2C719&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":199714,"url":"https:\/\/climatescience.press\/?p=199714","url_meta":{"origin":366258,"position":2},"title":"CFACT attends ConocoPhillips shareholder meeting, votes against climate resolution","author":"uwe.roland.gross","date":"13\/05\/2022","format":false,"excerpt":"EINDHOVEN, NETHERLANDS - AUGUST 29, 2016: Modern architecture and Philips building in Eindhoven. 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In the U.S., the SEC proposed the development of climate-related reporting standards in March 2022.<\/strong> The final rule<\/strong>, adopted on March 6, 2024<\/strong>, required large publicly traded companies to disclose climate action, GHG emissions, and the financial impacts of severe weather events<\/strong>. The Climate-Related Disclosure Rul<\/a>e was initially set to go into effect in 2026. However, it was immediately met with legal challenges <\/strong><\/a>and the SEC delayed implementation indefinitely<\/strong> while the cases worked through the judicial process<\/a>. Now it appears the delay will become permanent.<\/em><\/p>\n\n\n