Beyond the legal problems in the Proposed Rule, the Proposed Rule worryingly ignores the interests of everyday Americans.
Texas Insider Report: AUSTIN, Texas – Attorney General Ken Paxton joined a West Virginia-led comment letter opposing a proposed Securities & Exchange Commission (SEC) Rule that would impose new unconstitutional ESG-related (Environmental, Social & Governance) requirements on financial advisors and investment companies. The new rule mandates that funds disclose the greenhouse gas emissions of their portfolio – among other arduous requirements.
Environmental, Social & Governance (ESG) criteria are used to screen investments based on a corporation's ESC policies in order to encourage, or pressure companies to act responsibly toward the environment.
Paxton and the 20 other states co-signing the Aug. 16th letter believe this represents another thinly-veiled attempt by the Biden White House to target certain industries, and not only violates the 1st Amendment and the SEC’s materiality requirement, but it also threatens to limit investment in the vital energy sectors that the American people depend upon.
The letter spotlights how the proposed rule goes far beyond the scope of the SEC’s pro-consumer regulatory authority and instead allows it to push a radical social agenda.
“Federal securities laws are a vital protection for investors across America,” the letter reads.
“But now, the SEC has become more and more aggressive in implementing a political agenda untethered from its statutory mission. Beyond the legal problems in the Proposed Rule, the Proposed Rule worryingly ignores the interests of everyday Americans.
"We urge you to step away from imposing burdensome new requirements that only make investing more expensive. The Proposed Rule must not be finalized.”
