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Farmer testifies on SEC climate disclosure impacts
A third-generation grower says the Securities and Exchange Commission’s proposed rule on climate-related disclosures does not consider the costs that will be placed on framers.
“This rule would require extensive reporting by public companies on their Scope 3 emissions, which are the result of activities not owned or controlled by the company but are in its supply chain,” he explains. “I expect most family farms in America will be impacted by this proposal.”
He says many farms do not have the resources or legal support to become compliant and the proposal would likely drive more consolidation in the sector.
“Weather events or plant pests and diseases create hurdles year-to-year that would deeply complicate the reporting process,” he says. “It is clear that the SEC did not account for the complexities and nuances of farms when writing this proposed rule.”
Chairman of the subcommittee Michigan Republican Bill Huizenga says the proposal’s costs on public and private companies are wildly underestimated and questions if the SEC has congressional authority on environmental or climate issues.
Ranking Member Al Green of Texas says the rule seems to address the vagueness and lack of standardization of climate-related disclosures for public companies.
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