Full committee
hearing
on “Oversight of the U.S. Securities and Exchange Commission.”
Witness:
- Gary
Gensler,
Chair, U.S. Securities and Exchange Commission
From Utility
Dive:
Securities and Exchange Commission Chair Gary Gensler said Tuesday
that the agency has not yet released a final rule requiring disclosure
on climate risk partly because of public concern that companies would
need to report so-called Scope 3 carbon emissions across their supply
chains.
The SEC has received more than 16,000 public
comment letters about the climate risk disclosure rule that it
proposed in March 2022, with many asserting that Scope 3 reporting
will prove onerous for small businesses, Gensler said. “We got a lot
of comments around what’s called Scope 3 disclosures, and that’s what
we’re trying to move forward on,” he said in testimony to the Senate
Banking Committee.
Gensler declined to estimate when the SEC
will adopt a final regulation, while noting that rule revisions can
take from 12 to 24 months. “We try not to do things against the
clock,” he said, adding “it’s really when the staff is ready and the
[five-member agency] commission is ready.”
Referring to the proposed requirement that companies report carbon
emissions and climate risk, Gensler said, “many U.S. issuers are
already disclosing climate risk information and investors are making
investment decisions” based on the information. The
SEC, for the sake of investors, aims to
ensure the reports are consistent and comparable, he said.
“We have no climate agenda whatsoever,” he said. “We’re not climate
regulators.”
Gensler came under fire from the other side of the aisle, as Senator
Elizabeth Warren, D-Mass., criticized him for not pushing through the
disclosure rule sooner.
“When you were nominated two and a half years ago, you said the giant
corporation should not be able to hide their climate risks from
investors,” Warren told Gensler. “Without a strong climate risk
disclosure rule, that is exactly what companies will continue to do.
Senate Banking, Housing, and Urban Affairs Committee
538 Dirksen
09/12/2023 at 10:00AM