Morano on SEC ‘climate risk’ disclosures: ‘It’s a way for climate activists to literally get their claws into every aspect of a business’ without a vote of Congress

From Climate Depot

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Marc Morano of Climate Depot tells AFN the SEC vote represents a backdoor attempt by climate activists to use a “layer of bureaucracy” to enact their radical agenda that failed to get approved in Congress. “They’re not having Congress pass a big bill with public hearings and town hall meetings, and talk radio and constituents calling,” he says. “They’re doing this through the regulatory agencies of the administrative state.” … 

Morano predicts the SEC will do more than just collect the information: Companies that fail to live up to environmentalists’ demands, he says, will be harassed for failing to do their part. “It’s a way for climate activists to literally get their claws into every aspect of a business now because these disclosures are going to be used against them,” he tells AFN. “Everything they can and do report will be used against them by climate activists and the Biden administration bureaucrats.”

By: Admin – Climate Depot March 22, 2022 2:32 PM

https://afn.net/science-tech/2022/03/22/big-business-witnessing-backdoor-scheme-to-dig-shame-and-harass/

Big Business witnessing backdoor scheme to dig, shame, and harass

By Chris Woodward, Billy Davis

The economy-wrecking “Green New Deal” has not been abandoned by determined Democrats, who witnessed their radical plan die in Congress, and now comes their newest strategy: Private corporations must comply with climate-related mandates in order to participate in stock markets.

On Monday, the U.S. Securities and Exchange Commission voted 3-1 to approve new rules about “climate risks” that require publicly traded companies to report their greenhouse gas emissions and describe how climate change is affecting their business operations.

According to The Associated Press, businesses that are public companies would also be required to develop transition plans for managing climate risk; explain how they intend to meet climate goals; and document the impact of severe weather events on their finances.

Marc Morano of Climate Depot tells AFN the SEC vote represents a backdoor attempt by climate activists to use a “layer of bureaucracy” to enact their radical agenda that failed to get approved in Congress.

“They’re not having Congress pass a big bill with public hearings and town hall meetings, and talk radio and constituents calling,” he says. “They’re doing this through the regulatory agencies of the administrative state.”

In fact, the AP story states the SEC vote represents a “drive across the [federal] government to address climate change.” That goal comes after President Joe Biden vowed last year to cut greenhouse gases and move the U.S. to “clean energy” by 2030, the story said.

Hester Peirce, the only Republican among the four SEC commissioners, voted against the proposal.

“We cannot make such fundamental changes without harming” companies, investors and the SEC,” she said. “The results won’t be reliable, let alone comparable.”

‘Big Business’ viewed as enemy of planet

Dating back to the 1960s, the environmental movement has viewed private corporations as greedy, pollution-spewing enemies of the planet. That view of Big Business has only worsened in recent decades when activists embraced the apocalyptic-like view the planet is warming from gasoline and diesel, and now mankind is doomed if we fail to abandon fossil fuels and embrace “renewable energy” for electricity and automobiles.

According to the AP story, private businesses would be required to document greenhouse gas emissions that are produced – even indirectly – by their operation. The rule also demands documentation related to company transportation, such as the vehicles used to haul their products, and even employee business travel must be accounted for.

The same AP story says climate activists have “clamored” for mandatory disclosures from companies because they estimate excluding a company’s indirect greenhouse gas emissions leaves out 75% of those emission statistics.

Morano predicts the SEC will do more than just collect the information: Companies that fail to live up to environmentalists’ demands, he says, will be harassed for failing to do their part.

“It’s a way for climate activists to literally get their claws into every aspect of a business now because these disclosures are going to be used against them,” he tells AFN. “Everything they can and do report will be used against them by climate activists and the Biden administration bureaucrats.”

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Here is the formal press release.

SEC Proposes Rules to Enhance and Standardize Climate-Related Disclosures for Investors

FOR IMMEDIATE RELEASE
2022-46

Washington D.C., March 21, 2022 —

The Securities and Exchange Commission today proposed rule changes that would require registrants to include certain climate-related disclosures in their registration statements and periodic reports, including information about climate-related risks that are reasonably likely to have a material impact on their business, results of operations, or financial condition, and certain climate-related financial statement metrics in a note to their audited financial statements. The required information about climate-related risks also would include disclosure of a registrant’s greenhouse gas emissions, which have become a commonly used metric to assess a registrant’s exposure to such risks.

“I am pleased to support today’s proposal because, if adopted, it would provide investors with consistent, comparable, and decision-useful information for making their investment decisions, and it would provide consistent and clear reporting obligations for issuers,” said SEC Chair Gary Gensler. “Our core bargain from the 1930s is that investors get to decide which risks to take, as long as public companies provide full and fair disclosure and are truthful in those disclosures. Today, investors representing literally tens of trillions of dollars support climate-related disclosures because they recognize that climate risks can pose significant financial risks to companies, and investors need reliable information about climate risks to make informed investment decisions. Today’s proposal would help issuers more efficiently and effectively disclose these risks and meet investor demand, as many issuers already seek to do. Companies and investors alike would benefit from the clear rules of the road proposed in this release. I believe the SEC has a role to play when there’s this level of demand for consistent and comparable information that may affect financial performance. Today’s proposal thus is driven by the needs of investors and issuers.”

The proposed rule changes would require a registrant to disclose information about (1) the registrant’s governance of climate-related risks and relevant risk management processes; (2) how any climate-related risks identified by the registrant have had or are likely to have a material impact on its business and consolidated financial statements, which may manifest over the short-, medium-, or long-term; (3) how any identified climate-related risks have affected or are likely to affect the registrant’s strategy, business model, and outlook; and (4) the impact of climate-related events (severe weather events and other natural conditions) and transition activities on the line items of a registrant’s consolidated financial statements, as well as on the financial estimates and assumptions used in the financial statements.

For registrants that already conduct scenario analysis, have developed transition plans, or publicly set climate-related targets or goals, the proposed amendments would require certain disclosures to enable investors to understand those aspects of the registrants’ climate risk management.

The proposed rules also would require a registrant to disclose information about its direct greenhouse gas (GHG) emissions (Scope 1) and indirect emissions from purchased electricity or other forms of energy (Scope 2). In addition, a registrant would be required to disclose GHG emissions from upstream and downstream activities in its value chain (Scope 3), if material or if the registrant has set a GHG emissions target or goal that includes Scope 3 emissions. These proposals for GHG emissions disclosures would provide investors with decision-useful information to assess a registrant’s exposure to, and management of, climate-related risks, and in particular transition risks. The proposed rules would provide a safe harbor for liability from Scope 3 emissions disclosure and an exemption from the Scope 3 emissions disclosure requirement for smaller reporting companies. The proposed disclosures are similar to those that many companies already provide based on broadly accepted disclosure frameworks, such as the Task Force on Climate-Related Financial Disclosures and the Greenhouse Gas Protocol.

Under the proposed rule changes, accelerated filers and large accelerated filers would be required to include an attestation report from an independent attestation service provider covering Scopes 1 and 2 emissions disclosures, with a phase-in over time, to promote the reliability of GHG emissions disclosures for investors.

The proposed rules would include a phase-in period for all registrants, with the compliance date dependent on the registrant’s filer status, and an additional phase-in period for Scope 3 emissions disclosure.

The proposing release will be published on SEC.gov and in the Federal Register. The comment period will remain open for 30 days after publication in the Federal Register, or 60 days after the date of issuance and publication on sec.gov, whichever period is longer.

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