Central ND News

On Tuesday, Senators Kevin Cramer (R-ND) and Shelley Moore Capito (R-WV) expressed their concerns regarding the Securities and Exchange Commission's (SEC) proposed rule on climate-related disclosures for publicly-traded companies. In a letter addressed to SEC Chair Gary Gensler, the senators argued that the adoption of this rule would hinder domestic energy producers' access to capital and result in higher energy prices.

The senators questioned the SEC's jurisdiction in this matter, stating, "Congress did not change the SEC's regulatory authority, and in fact, the Environmental Protection Agency is the federal agency charged with air emissions reporting and regulation. This begs the question of where the SEC's presumptive and duplicative jurisdiction comes from." They also highlighted the issue of overcounting emissions upstream and downstream in supply chains due to the required reporting of estimated Scope 3 emissions.

Furthermore, Senators Cramer and Capito emphasized that current securities regulations already mandate companies to disclose significant risks in their annual and periodic reports. They pointed out that many companies voluntarily share extensive details about their sustainability practices to comply with the Supreme Court's materiality principles.

This is not the first time Senators Cramer and Capito have expressed their opposition to the SEC's proposed rule. In April of 2022, they led their colleagues on the Senate Banking and Environment and Public Works committees in a letter to the SEC, requesting the Commission to abandon its adoption. Addressing the SEC's delay in finalizing the rule, the senators stated, "Rather than performing legal gymnastics and subjecting the American economy to further uncertainty, we reiterate our request for the SEC to not adopt a final rule."

The senators' letter to SEC Chair Gary Gensler can be read in its entirety by clicking here.

It remains to be seen how the SEC will respond to the concerns raised by Senators Cramer and Capito. As the debate on climate-related disclosures continues, the future of the proposed rule hangs in the balance.

For additional details, please follow this link: https://www.cramer.senate.gov/news/press-releases/senators-cramer-capito-push-back-against-secs-burdensome-climate-disclosure-rule