Ceres Urges SEC to Withdraw Proposal to Rescind Climate Disclosure Rules

BOSTON—Ceres today submitted a comment letter to the U.S. Securities and Exchange Commission (SEC) opposing the agency's proposal to rescind its landmark 2024 climate-related disclosure rules. 

Ceres' letter argues that the rules, supported by mainstream investors and companies, fall well within the SEC's statutory authority, and the benefits of standardized disclosure outweigh the potential costs. Read the full letter here.  

“The corporate disclosure rules were put in place to support American investors in understanding how companies are managing climate risks and opportunities.  Rescinding the rules will leave investors in the dark and increase uncertainty for companies,” said Steven M. Rothstein, Chief Program Officer at Ceres. “For more than two decades, investors have called for clear, comparable, and decision-useful information on companies' exposure to climate risk. That’s why there has been an urgency and strong support from investors and companies to adopt these rules.” 

The financial impacts of extreme weather are growing. Already this year, record-breaking weather disasters — from an unusually severe January freeze in Florida to a historic tornado outbreak across the Midwest — along with record-breaking heat and rising ocean temperatures, underscore the accelerating financial and infrastructure risks to communities, companies, and investors. 

A Ceres analysis of public comment letters from hundreds of investors who collectively own or manage more than $50 trillion in assets showed that they supported the SEC’s climate disclosure rule, arguing that they needed this information for their investment and voting decisions. Corporate support was prompted in part by recognition that the current state of disclosure consisted of a range of confusing and overlapping standards and guidelines both within and outside the United States. 

“Make no mistake, climate disclosure is moving forward with or without the United States,” Rothstein added. “More than 41 countries, accounting for 60 percent of the world’s GDP, have approved or proposed climate disclosure rules. Rescinding this rule is a step backwards for US markets and the millions of Americans whose financial future depends on their investments.”  

 x

About Ceres 

Ceres is a nonprofit advocacy organization working to accelerate the transition to a cleaner, more just, and resilient economy. With data-driven research and expert analysis, we inspire investors and companies to act on the world's sustainability challenges and advocate for market and policy solutions. Together, our efforts transform industries, unlock new business opportunities, and foster innovation and job growth – proving that sustainability is the bottom line. For more information, visit ceres.org.