With the U.S. Securities and Exchange Commission likely to rescind Biden-era rules requiring climate-related disclosures, many companies can expect a significantly lower compliance burden—but that doesn't mean they can stop thinking about climate altogether in their public disclosures, experts say.

The agency last month proposed rescinding a set of rules from 2024 that would have required public companies to disclose their climate-related risks, business strategies and, in some cases, greenhouse gas emissions. The rules were quickly blocked in a court challenge and have never taken effect.

SEC Chair Paul Atkins gave both policy and legal reasons for his proposal to rescind the rules. He said they imposed a large burden on companies that was unnecessary to protect investors and that it was a “dramatic overreach” beyond the agency’s legal authority.

“One of my clients just barely falls below the line in California,” said Driscoll Ugarte, a partner at Duane Morris. “They’re thrilled. It’s an administrative burden to have to comply with this. Even though they were willing to, they were fearful of the time and effort it would divert away from their business.”

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