July 19, 2023

Manchin Questions SEC Chairman on Proposed Climate Disclosure Rule, Rulemaking Comment Periods

Washington, DC – Today, U.S. Senator Joe Manchin (D-WV) questioned the U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler on the SEC’s climate disclosure rule that jeopardizes America’s economic and energy security, as well as the SEC’s rulemaking and the insufficient time it provides for public comment. The SEC is a federal agency that monitors markets, enforces laws regarding securities and investments and develops new regulations as markets change.

On climate disclosure rule that jeopardizes America’s economic and energy security:

“If ESG is taken in the same light of geopolitical unrest that we see around the world, you're putting us in a very unfair disadvantage and it can be very harmful. We have to have a balance between the energy and the economy, we should never get into that unbelievable situation we have seen in Europe,” Senator Manchin said. 

“Nearly 90% of the 500 largest companies already publish sustainability reports, calling into question the necessity of new requirements. These new requirements are harming small operations and food supply chains. Are you taking into consideration these burdens?” Senator Manchin questioned. 

On rulemaking and insufficient time for public comment:

“I understand that, under your tenure, the SEC has proposed twice as many rules as your predecessors. In the spring of this year, you announced your intention to finalize more than two dozen of these rules. My colleagues on both sides of the aisle, as well as businesses of all sizes, have expressed concern that the SEC has provided insufficient time for public comment, particularly given the significance of many of these rules. Constituents and companies affected by these rules believe comment periods should fall into the traditional 60-90 day range, however, under your tenure, 74% of rulemakings have had 30-day comment periods,” Senator Manchin said in part. 

“It is crucial that investors and companies have confidence that securities and market regulation changes are developed through robust, transparent processes that take into consideration a wide range of views. Given the importance of providing maximum certainty to the public on changes to our financial markets, will you commit to adhering closer to traditional public comment periods for future rulemaking?” Senator Manchin questioned.

Last year, Senator Manchin sent a letter to Chairman Gensler expressing concerns with the SEC’s proposed climate disclosure rule, which would require companies of all sizes to disclose considerably more information about their carbon emissions. Senator Manchin said that the proposed rule could hinder the “all-the-above” energy policy the country desperately needs, and expressed particular concern that reporting requirements could extend to small businesses down the supply chain indirectly contributing to emissions, also known as “Scope 3 emissions.”

Senator Manchin’s recent efforts to block the Biden Administration’s ESG policies:

  • On May 2nd, 2023, Senator Manchin led a group of 38 Senators in expressing concerns to Treasury Secretary Janet Yellen over the Federal Insurance Office’s (FIO) recent efforts to force the Biden Administration’s ESG agenda onto the state-regulated insurance industry.
  • On March 20th, 2023, Senator Manchin released a statement on President Biden’s veto of the bipartisan Congressional resolution to nullify the Administration’s ESG rule.
  • On March 6th, 2023, Senator Manchin published an op-ed urging the Biden Administration to put the economic, energy and national security needs of the country above their radical ESG agenda.
  • On March 1st, 2023, Senator Manchin voted for the bipartisan resolution to nullify the Biden Administration’s ESG rule and spoke on the Senate floor about the rule’s dangerous consequences.
  • On February 1st, 2023, Senator Manchin led 50 Senators in introducing their challenge to the Biden Administration’s ESG rule.

A video of Senator Manchin questioning the witness can be found here.