House Republicans target SEC climate risk rule
Republicans controlling House oversight of the Securities and Exchange Commission are targeting the agency’s proposal requiring companies to disclose in detail risks from climate change, saying the rule poses a threat to U.S. capital markets.
House Financial Services Committee Chair Patrick McHenry of North Carolina announced on Friday the creation of a Republican group focused on vetting Biden administration proposals promoting environmental, social and governance best practices.
The SEC’s climate disclosure rule “would have a wide-ranging impact on hard working Americans across all walks of life,” according to Rep. Bill Huizenga, R-MI, appointed leader of the nine-member ESG Working Group. The group “will focus on promoting strong, vibrant capital markets, while defending the interests of all retail investors,” he said in a statement.
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”