In a concerted effort, eighty House Democrats joined forces by signing a letter directed to Gary Gensler, Chairman of the Securities and Exchange Commission (SEC), on Monday. The letter emphasizes the need for prompt finalization of comprehensive climate-related disclosure mandates aimed at public companies.
The correspondence specifically appeals to Gensler to expedite the establishment of a requirement compelling companies to divulge information about their “climate-related risks.” This constitutes a pivotal aspect of a proposed disclosure regulation by the SEC. Furthermore, the rule under consideration necessitates corporations to reveal their strategies for evaluating these risks and to provide data on greenhouse gas emissions, acting as a representative measure of climate-related risk.
Distinguished Democratic representatives have lent their support to the initiative, with notable signatories including Jamaal Bowman and Alexandria Ocasio-Cortez from New York, alongside Californian representatives Eric Swalwell, Judy Chu, and Adam Schiff.
“We commend you for starting this process and we urge you to quickly finalize a strong and durable rule,” the letter’s authors wrote to Gensler. “You have drafted a well-reasoned proposal that is grounded in financial materiality, aligns with the demands of investors and market participants, and is clearly within the SEC’s mission, authorities, long-standing norms and responsibilities.”
The group of House Democrats authored the letter after Republicans have scrutinized the insertion of politicized climate concern and business operations. The letter’s authors wrote that they “are not naive to the environment” surrounding the government-led insertion of climate change policy into business, adding that such a mixture “should not be controversial” while likening its detractors to “opponents of climate action and U.S. leadership.”
Numerous Republican governors have pushed to excise Environmental, Social and Governance (ESG) investing policies and mandates from their states. Congressional Republicans have also targeted ESG policies and mandates, blasting ESG as a “scam” that unduly injects political concerns into business operations to the detriment of shareholders.
The letter also referenced a similar forthcoming disclosure rule from the European Union, pointing out that many American companies with a European presence will be required to comply with that directive. “Finalizing a strong ruling will allow the SEC to align its requirements with those of other financial regulators around the world,” the letter reads.
The SEC and the offices of Bowman, Ocasio-Cortez, Swalwell, Chu and Schiff did not respond immediately to requests for comment.
