NTTC Endorses Congressional Letter to the SEC Opposing Climate Related Disclosures for Investors
This week, NTTC became one of 90 organizations supporting a joint letter to the Securities and Exchange Commission (SEC) in opposition to proposed rule called “The Enhancement and Standardization of Climate-Related Disclosures for Investors.” Delivered to SEC Chair Gary Gensler on July 20, 2022, the letter was authored by twelve members of Congress including Ranking Member Blaine Luetkemeyer, House Committee on Small Business; and Vice Ranking Member Roger Williams, House Committee on Small Business.
According to the letter, the SEC’s proposed rule would require publicly traded companies to disclose enhanced greenhouse gas (GHG) information, including “all indirect GHG emissions not otherwise included in a registrant’s Scope 2 emissions, which would occur in the upstream and downstream activities of a registrant’s value chain.” It is believed that this specific provision could extend GHG disclosures to almost every private company in America that does business with a publicly traded company as a part of its “value chain.” Consequently, it is feared that such a measure would have a dramatic impact on American small businesses.
“Small firms simply cannot afford the additional burdens of the proposed rule. It is for this reason and the reasons outlined in this letter, that we ask you to rescind this proposed rule to protect small businesses and allow them to drive the U.S. economy,” the letter concluded.
NTTC will continue to monitor the proposed “The Enhancement and Standardization of Climate-Related Disclosures for Investors,” and will advise members when updates develop.
Click here to read the letter in its entirety.