The SEC’s Climate, Social, and Governance (ESG) rule is unenforceable
- The SEC can only create rules deemed necessary or appropriate for the proper protection of investors and to insure fair dealing in the security
- It cannot regulate non-financial goals like ESG
- Only Congress is authorized to craft bills relating to climate and environmental regulations
Potential Consequences:
- Small agribusinesses are already subject to onerous regulations by local, state, and federal laws. Why put more strains on struggling businesses that feed and nourish us?
- Adopting a more rigorous reporting regime in this manner would invite massive privacy concerns.
- If the SEC goes down this route, registrants working with small companies won't trust them to handle disclosures containing sensitive information going forward.
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