April 22, 2024
Climate Disclosure: Joint “CRA” Resolution Introduced to Nullify Requirements
No huge surprise here, but if you’re the person at your company who is expected to be on top of the status of the SEC’s climate disclosure rules, it’s worth noting that last week, over 30 G.O.P. legislators (and one Democrat) from both chambers of Congress introduced a joint resolution under the Congressional Review Act to attempt to nullify the regulations. Dave had observed this maneuvering last month and John previewed a House Committee meeting on the topic a couple of weeks ago.
The CRA resolution is at a very early stage. This MSN article reiterates that it faces an uphill battle to become law:
To overturn the SEC’s rules, the resolution’s supporters would need to pass it with simple majority rules in both the House and the Senate. If they can manage that, the resolution would then go to President Biden to be signed. If President Biden vetoed the resolution, were it to pass, Congress could override his veto with a two-thirds majority vote in each chamber.
The Sustainable Investment Caucus released a statement saying that the Democrats on the House Financial Services Committee voted unanimously to sustain the SEC’s rule. But the CRA resolution is good political messaging for the folks who signed on. And if by some way it passed, the SEC would be prohibited from proposing a similar rule for 5 years.
– Liz Dunshee