House Republicans are urging the Securities and Exchange Commission (SEC) to reverse its proposal that would require public companies to make climate change-related disclosures.
GOP lawmakers said the SEC should focus on its three-party mission to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. These proposed rules, Republicans said, go beyond the SEC’s statutory authority and subvert the SEC’s regulatory authority.
“This principles-based disclosure regime allows businesses to choose how best to comply with and thrive within these policies. Investors decide if they want to support these strategies. The proposed climate rules change the regulatory authority of the SEC, taking an innovative and activist approach to climate policy. This goes far beyond the authority, jurisdiction and expertise of the SEC. As a result, it will rightly attract legal challenges. It also jeopardizes our proven approach to capital allocation, as well as the independence and credibility of the agency,” the Republicans wrote in a letter to SEC Chairman Gary Gensler.
It was signed by 129 House Republicans, including Rep. Patrick McHenry (R-NC), a ranking member of the House Financial Services Committee, and Rep. Cathy McMorris Rodgers (R-WA), a ranking member of the House Energy and Commerce Committee.
“We call on you to rescind these proposed climate rules and respect the statutory limitations that Congress imposed on the SEC in Acts ’33 and ’34. It is the job of Congress to set our environmental policy, not the job of unelected regulators,” the lawmakers wrote.