Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC), requesting more information on the proposed rule on climate-related disclosures for investors. SEC is required to provide the requested information by June 29, 2022.
The SEC proposed rule would require publicly traded companies to gather and report global warming data, almost none of which is material to the finances of a business. According to the Senators, the proposed rule is unnecessary and inappropriate, exceeds the SEC mission and expertise, and will harm consumers, workers, and the entire U.S. economy. The letter also notes that proposed climate disclosure rule will impose enormous costs on the entire U.S. economy if it goes into effect. The Senators requested SEC to submit answers to a number of detailed questions, including the following:
- Whether SEC considered the impact that the proposed climate disclosure rule would have on energy prices and any other costs associated with the rule?
- What efforts, if any, has SEC made to minimize any First Amendment concerns associated with this proposed rule? (The proposed climate disclosure rule raises First Amendment concerns because it would appear to compel speech.)
- Whether SEC coordinated with other Federal agencies on the policies contained in the proposed climate disclosure rule?
The U.S. Banking Committee Republicans also requested that SEC preserve and turn over a number of records related to the proposed climate disclosure rule, including e-mails and text messages between SEC and the White House, the U.S. Environmental Protection Agency (EPA), the Financial Stability Oversight Council (FSOC), and others, including individuals and entities outside the Executive Branch.
Keywords: Americas, US, Banking, Securities, Climate Change Risk, ESG, Disclosures, SEC, US Senate Banking Committee
Dr. Denton provides industry leadership in the quantification of sustainability issues, climate risk, trade credit and emerging lending risks. His deep foundations in market and credit risk provide critical perspectives on how climate/sustainability risks can be measured, communicated and used to drive commercial opportunities, policy, strategy, and compliance. He supports corporate clients and financial institutions in leveraging Moody’s tools and capabilities to improve decision-making and compliance capabilities, with particular focus on the energy, agriculture and physical commodities industries.
Previous ArticleBNM Committee Furthers Work on Addressing Climate Change Risk
The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.
The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.
The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.
The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups
The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.
The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.
The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.
The Financial Accounting Standards Board (FASB) is seeking comments, until November 03, 2022, on the proposed technical and other conforming improvements for the 2023 GAAP Financial Reporting Taxonomy.
The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.
Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)