Republican Senators led by Patrick McHenry, the Senate Committee Ranking Member on Banking, Housing, and Urban Affairs, have demanded further information on the proposed climate disclosure rule by the Securities and Exchange Commission (SEC). McHenry, along with Tim Scott and Bill Huizenga sent a letter to SEC Chair Gary Gensler. The Republican leaders argue that the proposed rule “exceeds the SEC’s mission, expertise, and authority” and will “unnecessarily harm consumers, workers, and the U.S. economy” if finalised “in any form”. The proposal would require public companies to disclose climate-related information in their registration statements and periodic reports, including the oversight and governance of climate-related risks by the company’s board and management, and how any identified climate-related risks have affected or are likely to affect the company’s strategy, business model and outlook, among other requirements. The letter said: “Under [Gensler’s] leadership, the SEC has shifted away from its principles-based disclosure regime to a partisan, activist, and prescriptive approach. This includes implementing a climate agenda that is outside the scope of its mission and which will have significant economic and political consequences for the Nation and our capital markets.”
#NEW: Chairman @PatrickMcHenry, O&I Subcommittee Chairman @RepHuizenga, and @BankingGOP Ranking Member @SenatorTimScott sent a letter to @SECGov Chair @GaryGensler demanding information on his disastrous climate disclosure proposal.
— Financial Services GOP (@FinancialCmte) February 22, 2023