House Republicans are urging the Securities and Exchange Commission (SEC) to rescind its proposal that would require public companies to make climate change-related disclosures.
The GOP lawmakers said the SEC should focus on its tripartite mission to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. These proposed rules, the Republicans said, go beyond the SEC’s statutory authority and misappropriate the SEC’s rulemaking authority.
“This principles-based disclosure regime enables companies to choose how best to comply and thrive under those policies. Investors decide whether they want to back those strategies. The proposed climate rules shift the SEC’s rulemaking authority, taking a novel, activist approach to climate policy. This far exceeds the SEC’s authority, jurisdiction, and expertise. As a result, it will deservedly draw legal challenges. It also puts our time-tested approach to capital allocation, as well as the agency’s independence and credibility, at risk,” the Republicans wrote in a letter to SEC Chair Gary Gensler.
It was signed by 129 House Republicans, including Rep. Patrick McHenry (R-NC), ranking member on the House Financial Services Committee, and Rep. Cathy McMorris Rodgers (R-WA), ranking member on the House Energy and Commerce Committee.
“We call on you to rescind these proposed climate rules and to respect the statutory limitations Congress placed on the SEC in the ’33 and ’34 Acts. It is Congress’ job to set our environmental policy, not the job of unelected regulators,” the lawmakers wrote.