Missouri HR 4108: Urges Missouri to oppose federal rules or regulations requiring companies to disclose climate change risk

Bill Text

SECOND REGULAR SESSION
HOUSE RESOLUTION NO. 4108
101ST GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE THOMPSON.
5882H.01I DANA RADEMAN MILLER, Chief Clerk
WHEREAS, in March 2021, the Securities and Exchange Commission (SEC) sought
2 "public input . . . from investors, registrants, and other market participants on climate change
3 disclosure" and explored implementing new rules requiring disclosure of climate change risk
4 and other broader rules regarding the disclosure of environmental, social, and governance
5 (ESG) matters that may apply to publicly traded and privately held companies; and
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7 WHEREAS, the SEC intends to propose and finalize regulations to "enhance
8 registrant disclosures regarding issuers' climate-related risks and opportunities"; and
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10 WHEREAS, in May 2021, the White House issued the Executive Order on Climate-
11 Related Financial Risk, which directed federal agencies to develop and implement a
12 government-wide strategy on climate-related financial risk that may impact a variety of
13 public and private companies; and
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15 WHEREAS, in 2021, the SEC sent threatening letters to a number of companies that
16 claimed "information related to climate change-related risks and opportunities may be
17 required in disclosures related to a company's description of business, legal proceedings, risk
18 factors, and management's discussion and analysis of financial condition and results of
19 operations"; and
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21 WHEREAS, climate change risk and ESG disclosures and other elements of the
22 federal government's climate-related financial risk strategy are inconsistent with the First
23 Amendment, constituting compelled speech or, in the case of some elements of the Executive
24 Order on Climate-Related Financial Risk, unconstitutional conditions; and
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26 WHEREAS, these efforts are inconsistent with the SEC's mission to protect
27 investors; maintain fair, orderly, and efficient markets; and facilitate capital formation; and
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29 WHEREAS, SEC Commissioner Hester Peirce has warned that an SEC climate or
30 ESG disclosure regime would result in public shaming of certain firms based on nebulous,
31 incomplete, arbitrary, inconsistent, and political information; and
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33 WHEREAS, Congress has not provided statutory authority for the SEC to adopt
34 mandates related to climate change risk or ESG disclosures, and the Congressional Research
35 Service recognized in 2021 that "federal securities law does not explicitly require disclosure
36 of specific climate-related risks." Congress has also not authorized any of the activities
37 directed under the Executive Order on Climate-Related Financial Risk; and
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39 WHEREAS, Paul G. Mahoney and Julia D. Mahoney of the University of Virginia
40 School of Law stated "The SEC has neither the expertise nor the political accountability to
41 pursue climate, diversity, or other public policy goals"; and
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43 WHEREAS, such mandates will substantially increase costs for a wide variety of
44 businesses; and
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46 WHEREAS, previous creation of national regulations on climate change included
47 multiple public hearings around the country, including outside of Washington, D.C., and in
48 areas with significant energy production; and
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50 WHEREAS,manyAmericancorporationshavecommittedtojointlyusetheirmarket
51 power through organizations, such as Climate Action 100+ and the Glasgow Financial
52 Alliance for Net Zero, to phase out natural gas and coal-powered energy generation, restrict
53 investment in fossil fuels, and otherwise use their combined market power to pursue
54 environmental or other ESG policies without regard to the economic and other consequences
55 such transition will have on American citizens, including the citizens of Missouri; and
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57 WHEREAS, a forced transition to "net zero" emissions would have negative effects
58 on Missouri and its citizens including, but not limited to, increased energy costs, increased
59 inflation, job losses, reduced job creation, reduced state tax base, harmed retirees and state
60 pension beneficiaries, reduced capital investment, reduced diversity of energy sources, and
61 increased vulnerability of energy production and of the citizens of Missouri who rely on
62 energy to survive extreme hot or cold weather:
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HR 4108 2

64 NOW THEREFORE BE IT RESOLVED that we, the members of the Missouri
65 House of Representatives, One Hundred First General Assembly, Second Regular Session,
66 hereby:
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68 (1) Urge Missouri to exercise all of its authority, including litigation, legislation,
69 administrative action, and any other available method, to prevent a forced imposition of
70 environmental and other ESG policies, whether from the federal government or other form of
71 coercion, and join together with other states sharing this commitment;
72
73 (2) Urge the governor and all executive officers to exercise all discretion afforded to
74 themunderlaw toensure thatthefederal government,domesticorinternational organizatio