WASHINGTON—House Committee on Oversight and Accountability Chairman James Comer (R-Ky.) and Senate Committee on Banking, Housing, and Urban Affairs Ranking Member Tim Scott (R-S.C.) are taking action to further their investigation into the Biden administration’s Securities and Exchange Commission’s (SEC’s) coordination with European Union (EU) regulatory authorities on environmental, social, and governance (ESG) climate-related measures that impact U.S. businesses.
In letters to current and former top officials at the SEC, the lawmakers are requesting transcribed interviews to understand the SEC’s role and activities in the development of EU climate-related corporate disclosure directives and the SEC’s activities taken in connection with the SEC’s proposed climate disclosure rule. The Committee leaders warned that these policies would harm a broad range of U.S. businesses.
“The E.U. is moving forward with climate directives that will have significant impacts on American companies. […] As U.S. policymakers, we are concerned that, under the Biden Administration, the SEC and other federal agencies have been coordinating with, or ceding regulatory responsibility to, foreign regulators on these and other climate measures that will force burdensome and non-material reporting obligations on American companies,” the lawmakers wrote.
“We are deeply concerned that U.S. agencies under the Biden Administration are either passively allowing a foreign entity to regulate U.S. companies in America or are willfully circumventing the U.S. regulatory process by actively coordinating with foreign governments to dictate climate and economic policy to U.S. companies,” the lawmakers continued.
Today’s letters are a continuation of efforts by the two lawmakers to investigate how the Biden administration’s progressive ESG policies are jeopardizing the economic, energy, and national security interests of the United States. In June 2023, Chairman Comer and Senator Scott demanded answers and records from the Biden administration about its role in facilitating the EU’s efforts to impose its progressive climate agenda on American companies.
Read the letter to the Honorable Gary Gensler, Chairman of the SEC, here.
Read the letter Prashant Yerramalli, recently departed SEC Chief of Staff, here.
Read the letter to the Honorable Allison Lee, former Commissioner and Acting Chair of the SEC, here.