Ceres Denounces Proposal to Rescind Climate Disclosures

Assets Managed

$50 trillion

Total assets managed by investors supporting the federal climate disclosure rule.

§ 01 Executive Snapshot

What: A proposal to rescind the federal corporate climate disclosure rule has been announced.
Who: Steven M. Rothstein, Chief Program Officer at Ceres, and hundreds of investors managing over $50 trillion in assets.
Why it matters: The proposal threatens to undermine investor access to crucial climate-related information, which is essential for informed decision-making.

The SEC rule was implemented to support American investors by providing clarity on climate-related risks and opportunities.
Ceres' analysis revealed that hundreds of investors, managing over $50 trillion, are in favor of maintaining the federal climate disclosure rule.
The existing disclosure landscape consists of confusing and overlapping standards, which the federal rule aimed to clarify and standardize.

For two decades, there has been a growing demand from investors for clear and consistent information regarding companies' exposure to climate-related risks.
The federal climate disclosure rule, adopted in 2024, was a significant step towards standardizing disclosure practices in the U.S. market.

If rescinded, the proposal could lead to decreased accountability and transparency in corporate climate disclosures, negatively impacting investor confidence.
Long-term implications include a potential regression in corporate governance practices related to environmental accountability.

The primary risk involves regulatory pushback from corporate stakeholders who support the existing disclosure framework and oppose the proposed rescindment.
There is a risk of further confusion in the market if the proposal leads to a fragmented disclosure environment, complicating investor decision-making.

The SEC has initiated a 60-day public comment period regarding the proposal, where stakeholder feedback will be crucial.
Future developments will depend on the SEC's response to public comments and whether they will uphold the existing climate disclosure rule.

§ 07

What is the proposal announced regarding climate disclosures?

A proposal has been announced to rescind the federal corporate climate disclosure rule.

Who is supporting the federal climate disclosure rule?

Steven M. Rothstein from Ceres and hundreds of investors managing over $50 trillion in assets are in favor of maintaining the rule.

Why is the federal climate disclosure rule important?

It provides clarity on climate-related risks and opportunities, which is essential for informed decision-making by investors.

When was the federal climate disclosure rule adopted?

The federal climate disclosure rule was adopted in 2024.