32 senators call on Securities Exchange Commission to withdraw climate reporting rule

The letter is signed by Sens. Charles Grassley, John Hoeven, Tim Scott, Cynthia Lummis, Roger Marshall, James Risch, Mike Crapo, Steve Daines, Thom Tillis, Richard Burr, Ted Cruz, John Barrasso, Bill Hagerty, Tom Cotton, Rick Scott, Roger Wicker, Deb Fischer , Tommy Tuberville, Kevin Cramer, John Kennedy, Bill Cassidy, Mike Braun, Mike Rounds, Joni Ernst, James Lankford, John Cornyn, Jerry Moran, Lindsay Graham, John Thune, Todd Young, John Boozman and Josh Hawley.

More than 100 agricultural interest groups requested a 180-day extension in an April 26 letter to the SEC.

The proposed “Improving and Standardizing Investor Weather Disclosure” rule was introduced by the SEC to protect investors in publicly traded companies. This would require these companies to report data across their entire supply chain.

THE AFBF HAS DEEP CONCERNS

American Farm Bureau Federation President Zippy Duvall said in a May statement that the group had “deep concerns” about the proposal, including increased costs, legal liabilities and privacy concerns for farmers. farmers.

The American Farm Bureau Federation said in a press release regarding the letter signed by 120 agricultural groups: “Almost all of the products from farmers and ranchers end up hitting a publicly traded company, which means that farmers and ranchers may be required to provide personal and business-related information. Data.”

The senators said they were concerned the SEC had come forward with the proposal without doing “appropriate due diligence” in analyzing how the rule would affect farmers and ranchers.

“As you know, the Red Tape Reduction Act and the Regulatory Flexibility Act set out specific requirements with which agencies, including the SEC, must comply in the rule-making process,” the letter reads. .

“Specifically, the PRA requires agencies to assess a government agency’s specific need to collect information and provide a ‘specific and objectively supported estimate of the burden’ on the relevant entities.

“We believe this rule reflects a significant overstepping of the SEC’s traditional focus on capital markets, and we urge you to rescind it.”

The SEC’s proposal would require companies to show how they identify and manage climate risks and how the risks affect companies.

Companies would then be required to report on how they meet climate commitments.

The proposal divides emissions into three categories. Companies with more than $75 million in revenue should report so-called scope 1 and 2 emissions directly from their operations. Scope 3 would cover customer and supply chain emissions.

Learn more about DTN:

“Extended comment period on climate rule”, https://www.dtnpf.com/…

“Farm groups alarmed by SEC climate rule”, https://www.dtnpf.com/…

Todd Neeley can be reached at [email protected]

Follow him on Twitter @DTNeeley

Aurora J. William