U.S. Rep. French Hill (R-AR) is among a group of Republicans on the House Financial Services Committee that have expressed concerns with the Securities and Exchange Commission (SEC) proposal to mandate disclosures for public companies regarding climate change and greenhouse gas emissions.
“We are concerned that in the context of climate change disclosures, the SEC is currently on a course that will take it far afield of its statutory mission to protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation…The nature and scope of climate change disclosure rightfully depends upon a particular company’s business line and their carbon footprint…One-size-fits-all, uniform mandates would be deeply misguided for an issue as complex as climate change,” Hill and the 22 Republican committee members wrote to SEC Chair Gary Gensler.
The GOP committee members reminded the SEC chair of the importance of the materiality standard for corporate disclosure, as well as the commission’s obligations under the Administrative Procedures Act (APA). Further, they discussed the importance of the SEC’s reputation as an expert regulator that operates independently of political agendas.
“We urge you and your fellow commissioners to ensure that any further action the SEC takes regarding climate-related disclosure is clearly tied to its core competencies… [which] ultimately will ensure that the Commission’s rulemakings are in the long-term interest of Main Street investors,” the lawmakers added.
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