A Trump SEC would aim to reverse climate disclosure rule, ratchet up ESG fights, sources say

• If former President Donald Trump were to win the White House in November, the Securities and Exchange Commission under his administration would likely curtail the rules recently adopted on climate disclosure.
• The rule "costs companies and investors a tremendous amount of money, and provides them no benefit," said a person who is advising Trump on SEC related matters.
• One potential exception to an easing up on regulations at the SEC would be its approach to crypto, said a former assistant director in the commissions division of enforcement.

The Securities and Exchange Commission under a second Donald Trump presidency would roll back the aggressive stance the government agency has taken against corporate giants with current chairman Gary Gensler at the helm, according to people familiar with the matter.

If Trump were to defeat President Joe Biden in November, the SEC under his administration would likely start by curtailing many of the rules recently put in place tied to the environment, according to experts and people close to the former president. An initial target of the SEC under a second Trump administration would be to roll back the new climate disclosure rules, these people explained.

Gensler and the SEC adopted a rule in March requiring large publicly traded companies to disclose their levels of greenhouse gas emissions. The largest companies are required to make climate disclosures as early as fiscal 2025, with specifics on greenhouse gas emissions as soon as fiscal 2026.

Gensler argues greenhouse gas emission levels and other climate related data have a material impact on businesses, and investors deserve to know this information.

But an SEC chaired by a Trump appointed Republican would likely remove these