The Securities and Exchange Commission on Friday formally proposed rescinding its 2024 rule that would have required publicly traded companies to disclose certain climate change-related information.

The SEC, currently composed of three Republican commissioners and no Democratic members, issued a statement outlining its plans to eliminate the climate disclosure requirements. The rule in question had been passed under the previous commission composition.

The proposed action represents a significant shift in corporate disclosure policy regarding environmental matters. The 2024 rule would have mandated that public companies provide investors with information about climate-related risks and their potential financial impacts.

The commission's move comes as part of broader regulatory changes under the new administration. The formal proposal will likely undergo a public comment period before any final determination is made on the rule's fate.

The climate disclosure requirements had been designed to provide investors with standardized information about how climate change might affect companies' operations and financial performance. Supporters argued such disclosures would help investors make more informed decisions about environmental risks.