As the countdown to the release of the Securities and Exchange Commission’s (SEC) proposed climate disclosure rule ticks away, lawmakers are re-upping their opposition of the rule. Last month, Sen. Joe Manchin (D-W.Va.) called on the agency to consider more public opinions and input before finalizing.
Manchin, alongside Sen. Bill Hagerty (R-Tenn.), asked the SEC to allow more public feedback on its climate disclosure plans. This comes as pressure mounts to reengage companies, investors, and others on rules proposed more than a year and a half ago. The senators’ reasoning behind this ask is the need to reevaluate and update the out-of-date proposal, which would inflict serious economic damage on companies of all shapes and sizes.
The senators called upon the SEC to maintain and uphold its “tripartite mission to protect investors, maintain fair, orderly and efficient markets, and facilitate capital formation.” They urged the commission to ensure the final rule does not risk damaging companies that would have to shoulder the burdens of complying with the proposed climate-reporting standards.
With an April 2024 timeline now projected, the SEC should heed the pleas of the senators, as well as concerned companies, and determine how best to approach a total revamp of the rule. Better yet, the rule should be scrapped entirely.