SEC rule to end Biden-era climate policy sent to White House

The White House is reviewing a proposal from the Securities and Exchange Commission to formally end Biden-era climate disclosure rules for publicly traded companies. 

The regulator sent the measure to the White House's Office of Management and Budget for review on May 4, according to a post on a government website. 

The old corporate disclosure regulations, issued under former SEC Chair Gary Gensler, had never been implemented amid a spate of legal challenges. The Trump administration had effectively set the rules aside a year ago when the regulator told a judge that it would no longer defend the policy in court.

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"The Commission is focused on returning the agency to its core mandate — in line with its legal authority — restoring a materiality-focused approach to securities regulation," a spokesman for the SEC said in an email.

The policy was one of the signature efforts of Gensler's leadership of the SEC. It required companies to report material risks to their business due to a changing climate, as well as carbon emissions for some firms. 

Once the OMB finishes reviewing the draft proposal, it will be sent back to the SEC for a vote by the commission members before it can be released to the public. The agency will take public feedback and revise the rule before commissioners vote on a final text, typically many months later.