SEC Gives Public Until June 17 to Weigh In on Climate Risk Proposal

The Securities and Exchange Commission (SEC) extended until June 17 the period for public comment on its landmark proposal to require publicly traded companies in the United States to disclose a variety of climate-related risks and greenhouse gas emissions.

Source: Reuters | Published on May 10, 2022

Smoke from the power station.

Gary Gensler, the SEC's chairman, stated that the deadline was extended due to "significant interest" from a wide range of investors, issuers, market participants, and other stakeholders. The proposal's initial public comment period ended in April.

With the proposed rule, prominent Republicans have accused the SEC of exceeding its authority. The US Chamber of Commerce has vowed to oppose parts of the plan.

The agency also extended the public comment period on separate proposals to improve private fund advisor disclosures and expand Treasury trading platforms by 30 days.

Corporate groups have chastised Gensler for the agency's initial 30-day comment period windows for these and other measures, claiming that such a short period is insufficient for providing feedback on such ambitious rule changes.

"The SEC greatly benefits from hearing from the public on proposed regulatory changes," said Gensler in a statement.

In November, Gensler stated that the SEC would consider new oversight rules for some platforms that trade US Treasuries, with the goal of increasing transparency and competition. The watchdog proposed new regulations in February to scrutinize how private fund advisers charge investors fees and measure fund performance.

The SEC's climate rule proposal was unveiled in March in response to investor demand for consistent information on how climate change will affect the financial performance of companies in which they invest.

President Joe Biden's push to join global efforts to avert climate-related disasters includes the proposed SEC rule.

"Commenters with varying points of view have indicated that they would benefit from more time to review these three proposals, and I'm pleased that the public will have more time to provide thoughtful feedback," Gensler added.

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