Trump's top Wall Street cop shoots down Biden-era climate rules for US firms

• The climate disclosure rule would have forced all publicly traded companies to report climate-related threats (floods, wildfires, hurricanes) and required the largest firms to disclose their planet-warming emissions if material to investors
• Despite the federal repeal, US companies operating in California or internationally still face climate disclosure requirements, as California has its own law (first filings due Aug. 10) and 41 other countries covering 60% of the global economy have similar rules
• The SEC will accept public comments for 60 days before formally finalizing the repeal, which could be completed within the next year

SEC Chairman Moves to Eliminate Biden-Era Climate Disclosure Rules

SEC Chairman Paul Atkins announced Friday the repeal of Biden-era regulations requiring U.S. public companies to disclose climate-related risks and greenhouse gas emissions. Atkins criticized the rule as exceeding the SEC's authority and imposing "substantial costs on public companies," positioning the move as part of President Trump's deregulation agenda.

Key Details:

• The climate disclosure rule, drafted under former SEC Chair Gary Gensler, never took effect due to lawsuits filed in 2024 by the U.S. Chamber of Commerce and 25 GOP Attorneys General
• The regulation would have required all publicly traded companies to report threats from climate events (floods, wildfires, hurricanes)
• Largest firms would have needed to disclose their planet-warming emissions if deemed material to investors
• An initial version demanded tracking of supply chain and customer emissions before being scaled back
• Formal repeal could be finalized within a year following a 60-day public comment period

Affected Sectors:

Major beneficiaries include banks, airlines, oil companies, farmers, and retailers who opposed the additional reporting requirements. The rule was part of the broader ESG (Environmental, Social, Governance) movement, which became controversial during the 2024 presidential campaign.

Market Implications:

While the federal rule faces elimination, disclosure requirements persist elsewhere. California maintains its own climate disclosure law requiring both public and private companies operating in the state to report emissions, with first filings due August 10. Additionally, 41 countries covering approximately 60% of the global economy have similar regulations, meaning multinational U.S. companies still face climate-related reporting obligations.

The repeal represents a significant victory for corporate America seeking regulatory relief.