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Legislation could limit SEC climate rule

A U.S. Congressman says action is likely against the U.S. Securities and Exchange Commission’s climate disclosure rule.

Republican Bill Huizenga of Michigan is the Chairman of the House Financial Services Oversight and Investigations Subcommittee which oversees the SEC.  He tells Brownfield the proposed rule, which would require publicly-traded companies to disclose climate-related financial risks, is impractical.

“That publicly traded company would not only have to count their carbon footprint, they would have to count whoever sent them that product, their carbon footprint, and also any customer that is purchasing,” he explains.

Bipartisan legislation passed out of the U.S. House Committee on Financial Services last week included Huizenga’s bill which would increase transparency at the SEC and limit disclosures.

“We can do something called ‘limiting language,” what that would be…we disallow the Securities and Exchange Commission to pursue a particular line,” he says.  “We’re anticipating that if this rule goes into effect, there’s going to be a significant number of lawsuits.”

Huizenga says the current proposed climate rule is far-reaching and would have a severe impact on private companies, including family farms.