Beyond Scope: How the SEC’s Climate Rule Threatens American Markets (EventID=117092)

Video Description

Connect with the House Financial Services Committee Get the latest news: https://democrats-financialservices.house.gov/ Follow us on Facebook: https://www.facebook.com/HouseFinancialCmte Follow us on Twitter: https://twitter.com/FSCDems ___________________________________ On Wednesday, April 10, 2024, at 10:00 a.m. (ET) full Committee Chairman McHenry and Ranking Member Waters will host a hearing entitled, “Beyond Scope: How the SEC’s Climate Rule Threatens American Markets." ___________________________________ Witnesses for this one-panel hearing will be: • Elad Roisman, Partner, Cravath, Swaine & Moore LLP and former Commissioner and Acting Chairman of the U.S. Securities and Exchange Commission. • Robert Stebbins, Partner, Willkie Farr & Gallagher LLP and former General Counsel of the U.S. Securities and Exchange Commission. • Chris Wright, Chief Executive Officer of Liberty Energy. • Joshua T. White, Assistant Professor of Finance, Owen Graduate School of Management, Vanderbilt University. ___________________________________ Background On March 6, 2024, the Securities and Exchange Commission (“SEC”) voted 3-2 to adopt an 886-page rule entitled “The Enhancement and Standardization of Climate-Related Disclosures for Investors” (“the Climate Rule” or “the rule”). The rule introduces sweeping changes to existing disclosure obligations for public companies. Among its many requirements, the rule imposes new obligations including but not limited to scope 1 and 2 greenhouse gas (“GHG”) emissions; climate-related risks; board oversight of climate risks; management’s assessment and management of climate-related risks; climate-related targets and goals; and financial statement effects of certain climate related risks. Shortly after adoption, numerous lawsuits challenging the rule were filed, including by companies, trade groups and attorneys general from several Republican-led states. On March 15, 2024, the Fifth Circuit Court of Appeals granted a request for an administrative stay on the rule. The stay was subsequently lifted and, following the SEC’s request to consolidate pending litigation, the Eighth Circuit Court of Appeals was selected via a lottery to hear the consolidated case. Despite modifications made to the initial proposal, the final rule presents several challenges that will have ripple effects throughout the economy. For example, the rule’s new requirements will increase public companies’ compliance costs, add complexity to their operations, and subject them to increased litigation risk. Given the rule’s relatively short timeline for compliance, public companies must act immediately to adhere to the rule’s requirements. Ultimately, it will be everyday Americans who suffer, as companies will hire fewer employees, raise prices to afford higher compliance costs, or avoid going public in response to the rule. This hearing will examine these issues as well as additional problems with the Climate Rule, including its expected consequences on public companies, their employees, and investors. Legislative Proposals [H. J. Res. ____], providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Securities and Exchange Commission relating to ‘‘The Enhancement and Standardization of Climate-Related Disclosures for Investors.” ___________________________________ Hearing page: https://democrats-financialservices.house.gov/events/eventsingle.aspx?EventID=411338