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McHenry Statement on SEC Proposal to Require Disclosures Related to Climate Change

Washington, Mar 21 -

Today, the top Republican on the House Financial Services Committee, Patrick McHenry (NC-10), issued the following statement in response to the Securities and Exchange Commission’s (SEC’s) proposal to mandate disclosure of mostly immaterial information related to climate change:

“The Biden Administration is pushing its climate agenda through financial regulators because they don’t have the votes to pass it in Congress,” said Republican Leader McHenry. “The SEC’s proposal to require disclosure of information related to climate change that is not material for most companies is tone-deaf and misguided. I have long recognized the threat climate change poses to communities across America, and thoughtful climate policy—focused on the health and welfare of America’s working class—is long overdue. However, it is Congress’ job to set our environmental policy, not ill-suited and unelected bureaucrats. The SEC should focus on its core mission—protecting investors; maintaining fair, orderly, and efficient markets; and facilitating capital formation—rather than a far-left social agenda.”

Background:

On March 20, 2022, Republican Leader McHenry and former SEC Chair Jay Clayton published an op-ed in the Wall Street Journal outlining how it is the role of Congress—not unelected and ill-suited financial regulators—to set the environmental policy of the U.S.

On January 10, 2022, Republican Leader McHenry and Senator Pat Toomey, the top Republican on the Senate Banking Committee, sent a letter to SEC Chair Gary Gensler raising serious concerns with Chair Gensler’s decision to limit outside input on rulemakings by providing unreasonably short public comment periods. Today’s proposal is another example of Chair Gensler pursuing a major rulemaking, while limiting public input.

On December 15, 2021, Republican Leader McHenry issued a statement blasting SEC Chair Gensler for pursuing major rulemakings with inadequate public comment periods. Today’s proposal is another example of Chair Gensler pursuing a major rulemaking with inadequate opportunity for public input.

On April 19, 2021—SEC Chair Gensler’s first day in office, Republican Leader McHenry and Congressman Bill Huizenga (MI-02), the top Republican on the Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets, sent a letter to Chair Gensler urging him to avoid mission creep at the Commission. Today’s proposal is the exact mission creep the Republican Leaders warned against.

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