Summary

Limits the Securities and Exchange Commission (SEC) from forcing companies to share climate‑related information that is not material to investors. Companies would still have to disclose climate risks or data when it would matter to a reasonable investor’s decision. In short, climate disclosures can be required only if they are material. The measure does not create new disclosures, timelines, spending, or taxes. It relies on the long‑standing “materiality” standard in securities law.

Key Points

• Prevents the SEC from requiring non‑material climate disclosures from issuers.
• Companies must still disclose climate information that is material to investors.
• Relies on existing legal definitions of materiality; no new definitions are created.
• Targets only climate‑related disclosures; other SEC disclosure powers are unchanged.
• No new spending, taxes, or deadlines are included.
• May reduce compliance costs for companies by limiting immaterial reporting.
• Could limit comparability of climate data if firms disclose only what they deem material.
• Investors may receive less standardized climate information, but material risks must still be reported.

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