The U.S. Securities and Exchange Commission (SEC) has proposed rescinding the climate risk disclosure rules adopted in March 2024. The proposal, submitted on May 4, 2026, marks a shift under Chair Paul Atkins, who aims to revert to traditional disclosure standards focusing on material information for investors. The original rules, which never took effect due to legal challenges, required public companies to disclose climate-related risks, governance processes, and Scope 1 and Scope 2 greenhouse gas emissions. The rescission reflects a broader regulatory shift, as companies will now navigate a patchwork of state and international climate disclosure requirements. While this move reduces compliance costs at the federal level, it may lead to information asymmetry in the market, complicating investors' ability to compare companies' climate-related disclosures.