U.S. Sen. Tim Scott (R-SC) introduced a resolution to overturn the Securities and Exchange Commission’s (SEC) climate disclosure rule.
The resolution calls for the disapproval of the SEC rule, called the Enhancement and Standardization of Climate-Related Disclosures for Investors. Scott and his Republican colleagues said that the rule exceeds the SEC’s mission, expertise, and will harm consumers, workers, and the U.S. economy.
The rule, which was finalized in March, requires public companies to disclose climate-related risks that have had or are reasonably likely to have a material impact on the registrant’s business strategy, results of operations, or financial condition, among other provisions.
Along with Scott, the resolution was signed by every Republican on the Senate Banking Committee.
“The SEC’s final climate disclosure rule threatens economic opportunity across the country, and it must be overturned. Over and over again, SEC Chair Gensler has disregarded the real-world impacts of his aggressive regulatory agenda in his dogged pursuit of left-wing political priorities. This rule is no exception. The SEC’s mission is to regulate our capital markets and ensure all Americans can safely share in their economic success – not to force a partisan climate agenda on American businesses. This rule is federal overreach at its worst, and the SEC should stay in its lane,” Scott, who is ranking member on the committee, said.
The resolution also has the backing of several industry groups and stakeholders, including the American Petroleum Institute, Heritage Action, Americans for Tax Reform, Americans for Prosperity, and the American Energy Alliance.
“From day one, this administration has advanced an all-of-government approach to restrict America’s energy advantage with little regard for the statutory parameters set by Congress or the consequences that could stem from diminishing U.S. energy leadership. The SEC’s climate disclosure rule is yet another example, imposing burdensome costs on businesses across the economy while inundating investors and capital markets with confusing information,” American Petroleum Institute Chief Advocacy Officer and Executive Vice President Amanda Eversole said.
Thomas Pyle, president of the American Energy Alliance, said the climate disclosure rule will elevate the costs of energy production by escalating compliance expenses.
“This outcome will not only be detrimental to American consumers who will end up paying more for energy, but it will also undermine the rule’s own objective of curbing greenhouse gas emissions as it will relocate energy production to nations with lax environmental safeguards. Furthermore, the rule oversteps the SEC’s statutory jurisdiction, demonstrates arbitrary and capricious decision-making, and infringes upon freedom of speech by mandating discourse on political issues,” Pyle said.
“When Americans invest their hard-earned money in investment and retirement accounts, they expect it to work for them, not radical environmentalists. Unfortunately, the Securities and Exchange Commission’s recent efforts to inject climate considerations into the regulation of investment products have undermined Americans’ confidence in their investments. The leadership of Ranking Member Scott in overturning the SEC’s Climate Risk Disclosure Rule is key to restoring that confidence,” said Americans for Prosperity Chief Government Affairs Officer Brent Gardner.