NEGATIVE Climate 118th Congress

H.R.4790 GUARDRAIL Act (SEC Climate Disclosures)

GUARDRAIL Act — limits the SEC from requiring companies to disclose climate-related financial risks to investors (118th Congress)

View on Congress.gov

Legal & Constitutional Grounding

SEC has disclosure authority under 15 USC 78m; 4,000+ organizations recognize climate risk as material to investors.

15 U.S.C. § 78m — Securities Exchange Act: SEC authority to require material disclosure from issuers

SEC Climate Risk Disclosure Rule (2024): requires disclosure of material climate-related financial risks
TCFD (2023): 4,000+ organizations support climate risk disclosure as material to investors

GUARDRAIL Act — limits SEC climate risk disclosure requirements. The bill reduces the scope of mandatory climate disclosure by allowing issuers to self-determine materiality, undermining investor access to documented climate-related financial risks.