Watch All Shows Victor Davis Hanson Tony Kinnett Daily Signal Signal Sitdown

Watch All Shows Victor Davis Hanson Tony Kinnett Daily Signal Signal Sitdown

Home – Securities and Exchange Commission News – The SEC Moves to Repeal Its Ridiculous Climate Disclosure Rule

The SEC Moves to Repeal Its Ridiculous Climate Disclosure Rule

Sarah Wagoner | Michael Bicksel

The Securities and Exchange Commission (SEC) recently introduced a proposal to rescind its 2024 rule requiring companies to report extensive data on climate change, a much-needed move that will benefit Americans. Everyday citizens can and should use the SEC’s rulemaking portal to comment in support of this proposal.

But first, it is worth revisiting the 2024 rule to understand why this proposal urgently needs to become a final rule.

The SEC regularly mandates that companies disclose certain impacts on their businesses so long as they are material—that is to say, matters that reasonable investors would find relevant to their investing strategy. These disclosures tend to be important but quite mundane, like mandating reporting on a company’s financial conditions, financial statements, and major events like mergers and acquisitions. The foundation for these disclosures came during the Great Depression, and the purpose of the measures was to prevent companies from misleading investors.

But the Biden-era rule departed from this standard. It mandated companies disclose all sorts of speculative climate impacts, effectively turning large parts of corporations into environmental data collection and modeling organizations instead of profitable companies. At times, it appeared as though the SEC expected firms to care more about predicting the weather than about disclosing material impacts to their business operations.

Even worse, the commission waded deep into corporate governance waters by pressuring companies to........

© The Daily Signal