U.S. Sens. John Hoeven (R-ND) and Tim Scott (R-SC) led 30 of their colleagues in denouncing a proposed rule from the Securities and Exchange Commission (SEC) that they say could place unattainable climate disclosure regulations on America’s farmers, ranchers and agriculture producers.
Specifically, the lawmakers are concerned about the SEC’s proposed rule on Enhanced and Standardization of Climate-Related Disclosures for Investors, released on March 21, according to a June 10 letter they sent to SEC Chairman Gary Gensler.
“In particular,” they wrote, “we have serious concerns regarding the SEC’s regulatory overreach, as well as the impact that this proposed rule will have on the agricultural industry. As such, we urge you to rescind the proposed rule.”
According to Sen. Hoeven, Sen. Scott, and their colleagues, the proposed rule would require publicly traded companies to include financial climate change disclosures in their registration statements and periodic reports, requiring them to disclose information about their direct greenhouse gas emissions (Scope 1); indirect emissions from purchased electricity or other forms of energy (Scope 2); and, if found to be material to investors, greenhouse gas emissions from all activities in its value chain (Scope 3).
“While farmers and ranchers have never been subject to SEC oversight, the proposed rule’s Scope 3 greenhouse gas emissions reporting requirement would place a major reporting burden on the many agricultural producers that provide raw products to the value-chain,” wrote the senators.
Such a “substantial reporting requirement” also would significantly burden small, family-owned farms with a new, complex and unreasonable compliance requirement that would result in costly additional compliance expenses, reduced access to new business opportunities, and potential consolidation in the agriculture industry, according to their letter.
Among the lawmakers who joined Sens. Hoeven and Scott in signing the letter are U.S. Sens. Steve Daines (R-MT), Thom Tillis (R-NC), Richard Burr (R-NC), Roger Wicker (R-MS), Deb Fischer (R-NE), Bill Cassidy (R-LA), Mike Rounds (R-SD), Joni Ernst (R-IA), Jerry Moran (R-KS), John Thune (R-SD), and Todd Young (R-IN).
“Should the SEC move forward with this rule, it would be granted unprecedented jurisdiction over America’s farms and ranches, creating an impractical regulatory burden for thousands of businesses outside of the scope of the SEC’s purview, including our nation’s farmers and ranchers,” they wrote. “We believe that this rule reflects a significant overreach of the SEC’s traditional financial markets focus, and we urge you to rescind it.”