In an SEC filing on June 17, Bill Peacock, policy director of the Energy Alliance, brought up his worry about the prospective ESG regulation under consideration by the U.S. Securities and Exchange Commission. The rule demands that a company track and disclose all emissions generated during its operations. Peacock requested that the agency "suspend consideration of the proposed rule," noting that adopting it would cause "human, social, and economic damage."
The proposed rule would require companies to disclose their greenhouse gas emissions and climate-related risks. The measure is part of the Biden administration's initiative to combat climate change.
Climate activists have praised the proposed rule, calling it a much-needed step in the fight against climate change. They hope that it will lead to greater transparency and accountability on the part of companies, and ultimately help to reduce greenhouse gas emissions. Critics, however, argue that the disclosure requirements could be burdensome for companies and that the SEC does not have the authority to mandate disclosure of climate-related risks.
Peacock opposed the proposed regulation on cost grounds; according to estimations, the added expense to businesses would be in the trillions of dollars each year, severely affecting the US economy.
He added that there is no need for regulation because businesses that believe it is in their interests to pursue an ESG strategy have been doing so willingly since they feel it gives them a competitive advantage. Not only that, but the US' deregulated market led the world in emissions cuts in 2019, which is a continuation of a years-long trend.
Peacock called attention to Texas and Arizona, which have rebelled against such legislation, noting that this type of rule is not popular across the country.