Senate Banking Committee Leader Reminds SEC to Follow Procedure on Any ESG Rulemaking
Senate Banking Committee Ranking Member Pat Toomey (R-PA) warned that it is "imperative" for the SEC to provide fair notice and to fully comply with the Administrative Procedure Act if the agency is going to impose new requirements related to climate change or on environmental, social, and governance ("ESG") issues.
In a letter to SEC Acting Chair Allison Herren Lee, Senator Toomey stated that recent SEC actions on climate and ESG issues "appear to presage major changes" at the SEC. Senator Toomey stated that such changes would be "premature" given that the SEC has yet to complete the review of its 2010 guidance on climate change disclosures and that the nominee for SEC Chair, Gary Gensler, has yet to be confirmed.
Senator Toomey requested a staff briefing on the issues with SEC Acting Chair Allison Herren Lee by the week of April 5, 2021.
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