Experts in finance and sustainability are criticizing the House Financial Services Committee for its efforts to advance a Congressional Review Act (CRA) resolution, which overturns the Securities and Exchange Commission’s (SEC) climate risk disclosure rule.
Ahead of a Committee markup this week, Unlocking America’s Future released research showing members of the Committee have taken over $5 million in campaign contributions from the oil and gas industry.
Below is a breakdown of what stakeholders are saying in advance of the Committee vote this Wednesday.
What They’re Saying
“The SEC is acting in the interest of investors, acting entirely within their mandate, to deal with the fact that investors in America tend to not like risk. They like to invest in portfolios that maximize the return with the lowest possible risk.” – U.S. Representative Sean Casten (D-IL)
“The comments made by some members of the House Financial Services Committee at today’s hearing were transparently self-serving attempts to appease the interests of the oil and gas industry in killing the SEC’s climate risk disclosure rule. Unlocking America’s Future commends Reps. Sean Casten (IL-06), Sylvia Garcia (TX-23), and Ranking Member Rep. Maxine Waters (CA-43), among other Committee members, for standing up to Big Oil and calling out witness’ testimony that undermined the SEC rule’s benefits to the American financial system and retirees.” – Kyle Herrig, Spokesperson, Unlocking America’s Future
“For years, investors have been demanding access to clear, consistent and comparable data from corporations on their climate risks and impacts. Last month, the SEC helped bring U.S. capital markets regulations into the 21st century by finalizing the climate disclosure rule, joining global regulators and standard setters in the pursuit of mandated, standardized corporate climate risk disclosures… Still, political actors are mobilizing to undo this progress toward greater transparency and accountability, and impact investors must raise their voices in support at this critical moment.” – Fran Seegull, President, U.S. Impact Investing Alliance
“The SEC Climate Disclosure rule is a baseline for minimal climate reporting. The fact that the companies have been given the power to decide what is material for investors is of great concern. Investors have spoken clearly and will continue to seek greater disclosure as they need this information to make buy, hold, and sell decisions linked to climate related risk.” – Andrew Behar, CEO of As You Sow
“Today’s hearing is yet another attack on the SEC. These efforts are part of a concerted agenda to hamstring the ability of shareholders to hold corporations accountable and protect their investments. Fossil fuel companies, industry associations, and right-wing groups have mounted a multifaceted legal attack on the SEC, targeting everything from the climate rule to the Nasdaq board diversity rule to the shareholder proposal process.” – Eli Kasargod-Staub, executive director of Majority Action
“Investors have made it clear that they want and need better climate-related financial disclosures. We oppose efforts to overturn this rule, a development that would leave our investors and markets more in the dark on climate risks. The SEC rule is an improvement over the status quo of inconsistent voluntary disclosure, but it should be viewed as a basic minimum standard and quickly expanded to include the full range of data that investors need to properly value securities, engage with firms to manage climate risk, and protect their portfolios.” – Alex Martin, policy director for climate finance at Americans for Financial Reform
