Bill of the Month May 2022: H.R. 7355, the Stop Excessive Climate Reporting Act.
Woke politicians in Washington are now looking to politicize the Securities and Exchange Commission (SEC) by forcing companies to disclose environmental, social, and governance (ESG) information to shareholders and the SEC.
ESG metrics include diversity among company leadership, approach to climate change, political contributions by board members and employees, and receptiveness to social change. This government overreach represents a dangerous politicization of the SEC that places left-wing values ahead of what should be the most important things a company should be focused on–maximizing profit and getting the highest rate of return for its investors.
A more than 500-page proposal, this regulation would require publicly-traded companies to disclose their impact on “climate change” to investors.
This is yet another in a long line of America’s last energy policy put forward by the Biden Administration. If adopted, this policy would discourage companies from going public.
When President Biden took office in 2021, America enjoyed energy independence because of the policies put forward by President Trump. But no longer. Biden canceled the Keystone XL Pipeline, destroying thousands of well-paying American jobs.
The Details
Lawmakers are standing up against Biden’s gross executive overreach and expressing their discontent with his continual push for ESG metrics. Rep. Beth Van Duyne (R-Texas) introduced H.R. 7355, the Stop Excessive Climate Reporting Act. This bill would stop the SEC from implementing this ridiculous and counterproductive proposal if made law.
Why it Matters
This proposal is part of the Biden SEC’s crusade to implement the Left’s climate plan, stalled in Congress. This complicated legislation-through-regulation scheme will saddle companies with substantial new costs and enable the woke ESG crowd to bully companies – all the while enriching the trial bar, who’ll find new ways to sue productive companies; and big accounting firms, who’ll reap revenue from helping companies comply with these reporting requirements.
If companies wish to ingratiate themselves with investors who prioritize ESG metrics and want to disclose the information publicly, that is the company’s prerogative. An unsettling prospect is a massive unfunded government mandate pushing companies to broadcast internal ESG policies.
Currently, the Stop Excessive Climate Reporting Act has 13 cosponsors. We hope to see more members take a stand against Biden’s America last energy agenda and support this legislation.
