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Gary Gensler Performs Climate Coup

Headquarters of the US Securities and Exchange Commission in Washington, DC


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Al Drago / Bloomberg News

Russia’s attack on Ukraine is changing the world. Except for Washington, DC, where the Biden administration continues to fight fossil fuels as if energy security was not an issue.

A recent strike came on Monday when the Securities and Exchange Commission voted 3-1 to advance a draft rule requiring listed companies to disclose climate risks. Proposals issued solely by Democratic votes violate SEC history, securities law, and soundness of regulatory practices.

Public companies already need to report “significant” events and risks. This is defined by the SEC as information that a reasonable person considers important. SEC Chairman Gary Gensler is redefining the importance of what BlackRock and progressive investors want to know. The proposal on page 510 calls for disclosure of risks to physical assets due to climate change and government anti-carbon policies.

Companies need to report greenhouse gas emissions directly from their businesses (such as refined oils) and energy consumption. Companies also need to report so-called Scope 3 emissions from their supply chains and customers. , Will be in the eyes of progressive investors.

For example, ExxonMobil needs to report direct emissions and emissions from fossil fuels burned to generate electricity for use. It may be necessary to quantify emissions from product combustion, product tankers, and manufacturing. When the rig and plastic products deteriorate.

There is no clear definition for scope 3 emissions. Authorities have stated that they “have not proposed a quantitative threshold for emission lines to determine their importance” for Scope 3 emissions. One size fits all standards. ”

But the overall rules impose universal regulations on thousands of public companies. It is probably important that non-life insurers are exposed to floods and wildfires. The same is true for direct emissions of fossil fuel producers operating in carbon jurisdictions. Tax and cap and trade system. However, carbon emissions have nothing to do with the financial performance of most public companies.

The SEC claims that it “has broad authority to promulgate disclosure requirements that are” necessary or appropriate for the public interest or the protection of investors. ” However, neither the securities law nor the Constitution requires the SEC to disclose publicly as desired by some investors or politicians. ..

In 2015, the DC Circuit Court of Appeals ruled that the SEC’s obligation to disclose so-called conflict minerals violated the First Amendment because it forced a speech. Do you report greenhouse gas emissions?

As a fallback argument, the SEC argues that climate change disclosure “promotes efficiency, competition and capital formation.” They do the opposite. They saddle businesses at new costs, discourage private companies from listing, and encourage some public companies. I will go private.

Gensler’s solution is to regulate private companies through the back door. To calculate Scope 3 emissions, public companies need to have private business partners and contractors report their emissions. In addition, companies must independently certify their emissions. This is another government. A gift for the Big Four accounting firms.

The economic benefits of this rule will be addressed on another day by ESG (environmental, social, governance) crowds. The main purpose of this rule is for bullies by left-handed asset management companies such as BlackRock, public pension funds, and lawyers. Public enterprises are responsible for climate disclosures that the SEC considers to be inaccurate or incomplete.

Gensler is responsible for the “safe harbor” for Scope 3 emissions, but there is no political safe harbor. Progressivists will get new weapons to attack businesses. Democrats will not be able to pass the climate agenda to parliament, so Vladimir Putin, a financial regulator to block investment in fossil fuels, will be pleased.

Reviews and Prospects: A publication that disregarded Hunter Biden’s story in 2020 acknowledges that it is genuine. Will Joe Biden finally answer the questions he refused to answer before he became president?Image: New York Post / AFP / Getty Images Composite: Mark Kelly

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Appeared as “Gensler Stagesa Climate Coup” on the print version on March 22, 2022.

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