U.S. Rep. Stephanie Bice (R-OK) introduced this week the Stop Environmental Calculations (SEC) Act, which seeks to address Securities and Exchange Commission (SEC) climate-related disclosure requirements.
The bill would prohibit the SEC from requiring an issuer to make climate-related disclosures. The legislation stems from a March 2022 proposed SEC rule requiring public companies to report detailed disclosures on climate risk and greenhouse gas emissions, including Scope 3 reporting not required by the Environmental Protection Agency (EPA).
“The SEC’s recently proposed rule would add nearly half a million dollars in compliance costs for publicly traded companies every year,” Bice said via a statement. “The SEC is tasked with overseeing financial markets and does not have the authority to require public companies to report Scope 3 emissions, climate risks, or greenhouse gas emissions.”
The SEC Act, which includes original co-sponsors U.S. Reps. Dusty Johnson (R-SD), Buddy Carter (R-GA), and Dan Newhouse (R-WA), will prevent the federal government from adding regulations on businesses and halt government overreach.
“Amidst stock market uncertainty, ongoing inflation, and supply chain shortages, the last thing we should do is add costs and make it harder for businesses to grow,” Bice concluded.
Bill proponents maintain the SEC’s proposed new requirements are estimated to cost public companies $420,000 to $530,000 in annual compliance costs – and the SEC Act would prevent the SEC from moving forward with the proposed rule.