WHAT IS HAPPENING: The Securities and Exchange Commission (SEC) proposes to require publicly traded companies to provide climate related information from their entire supply chain in their filings and annual reports, including potentially invasive and burdensome information about farms.
According to SEC Commissioner Hester M. Peirce, she writes that “We are Not the Securities and Environment Commission - At Least Not Yet.” Commissioner Peirce, on the minority side of 3-1 vote to publish the rules, writes “This proposal steps outside (the SEC) statutory limits by using the disclosure framework to achieve objectives that are not ours to pursue and by pursuing those objectives by means of disclosure mandates that may not comport with First Amendment limitations on compelled speech.”
Companies would be required to report on greenhouse gas emissions, climate-related targets and goals, as well as how climate risks impact their business. This is an end run around legislation to get companies to report certain climate change information in their financial reports.
WHY IT MATTERS: The rule extends reporting requirements for public companies to report on Scope 3 emissions, which are the result of activities from assets not owned or controlled by an organization but contribute to its value chain such as farms and ranches.
This could create burdensome reporting requirements for family farms and ranches selling into supply chains and force the disclosure of private information. And may create multiple, new sources of substantial costs and liabilities. These include reporting obligations, technical challenges, significant financial and operational disruption and the risk of financially crippling legal liabilities.
Farmers and ranchers are focused on growing the food, fuel and fiber this country needs, and have not had to worry about regulations intended for Wall Street. Unlike the large corporations currently regulated by the SEC, family farms and ranches don’t have teams of compliance officers.
OUR ASK: Write to the SEC today and tell them to stop this invasive regulatory overreach! Deadline is June17, 2022.
INSTRUCTIONS FOR YOUR MESSAGE: Complete your information in the boxes provided. This is required information to submit your comments to the SEC docket. Then click “SEND EMAIL” to send your comments.
You will then be presented with an option to send a message to your lawmakers to tell them how the proposed SEC climate rule could harm farms and ranches!