Sponsors
The bill reduces reporting burdens and disclosure clutter for companies and investors by restricting climate disclosures to material information, but it does so at the expense of transparency about long-term and emerging climate risks and corporate environmental impacts, potentially increasing risks for investors, taxpayers, and public accountability.
Public companies (issuers) and investors will face lower compliance time and costs and receive clearer, less cluttered disclosures because the bill limits climate reporting to information judged material and removes requirements for nonmaterial climate reports.
Financial institutions and taxpayers could face greater long-term exposure to undisclosed climate-related risks because companies may omit climate information that is material over longer horizons or in emerging markets when materiality is narrowly interpreted.
Middle-class families and taxpayers may lose a tool for holding corporations accountable for environmental harm because reduced climate disclosure makes it harder for regulators, asset managers, and the public to monitor corporate contributions to emissions and other climate impacts.
Investors and the public (including individual investors) could receive less climate-related information important for assessing long-term risk, limiting transparency about emissions, transition plans, and physical climate risks.
Based on analysis of 2 sections of legislative text.
Bars the SEC from requiring issuers to disclose climate-related information that is not material to investors.
Prohibits the Securities and Exchange Commission from requiring any issuer to make climate-related disclosures that are not material to investors. The restriction applies to the SEC’s rulemaking and other authorities under the Securities Exchange Act and contains no exceptions or implementation details.
Introduced January 9, 2025 by Stephanie I. Bice · Last progress January 9, 2025