WASHINGTON, DC – This week, Congressman Dave Joyce (OH-14) introduced a resolution to counter the Biden Administration’s recently proposed climate disclosures rules. Joining him in this effort are Representatives Rodney Davis (IL-13), Chris Stewart (UT-02), Nancy Mace (SC-01), Jeff Duncan (SC-03), and Dusty Johnson (SD-At Large).
The Securities and Exchange Commission (SEC) is tasked with regulating America’s financial sector, and its rules require companies to disclose “material” risks, as established by the Securities Act of 1933 and clarified several times by the Supreme Court. The Biden Administration SEC intends to expand the range of information that must be disclosed beyond that which is material to investors to include topics related to climate, diversity, and corporate governance often called “ESG” factors.
Securities laws already require public companies to disclose information that represents a “material risk” to the company. Consequently, any new information that the Biden Administration wishes to have disclosed by companies will not be material and will only serve to burden businesses and drown investors in a mountain of information overload.
“These new rules are a blatant attempt to weaponize the SEC in order to advance the Biden Administration’s political agenda,” said Rep. Joyce. “They will only serve to discourage investment in our nation’s energy sector and hinder our ability to restore America’s energy independence at a time when gas prices are skyrocketing and the world is seeking to eliminate the need for Russian oil and gas. I’m proud to introduce this resolution to make clear that the SEC was not established to micromanage the operations of U.S. companies based on the Democratic Party’s social and political goals. I urge my colleagues to join me in the effort to ensure the agency does not stray outside of its core mission.”
“I’m proud to stand against the Biden Administration and his decision to turn the SEC, a Commission designed to have a positive impact on our capital markets, into a burdensome over-regulating Woke Mob,” said Rep. Davis. “At a time when inflation is soaring, the Biden Administration’s Green New Deal regulatory agenda is not helping businesses, our constituents, and certainly not helping our overall economy.”
“ESG scores flip capitalism on its head and are just another way Leftists can advance their destructive political ends. At a time when the United States needs domestic energy production more than ever, the primary targets of expanding ESG disclosures are energy companies. I am proud to cosponsor a resolution to oppose ESG overreach at the Securities and Exchange Commission and ensure our markets remain free and thriving,” said Rep. Duncan.
Specifically, the resolution affirms Congressional support for the existing definition of “materiality” for the purpose of corporate disclosures and opposes new disclosure requirements that go beyond the SEC’s core mission. The target of these proposed rules is the energy industry, which will be required to make a variety of additional disclosures despite the fact that current law already requires public companies to disclose ESG-related information if it is material to their investors.