Today, Congressman Doug LaMalfa spoke on the U.S. House of Representative’s floor to discuss how environmental, social and governance (ESG) standards hinder domestic energy and food production. This comes as the Securities and Exchanges Commission proposed a new rule requiring publicly traded companies to disclose extensive climate-related data and “climate risks.” Congress did not authorize the SEC to establish ESG standards nor create overreaching rules that will inherently alter businesses’ strategies. LaMalfa sent a letter to SEC Chair Gary Gensler urging the commission to rescind the prosed rule.
“For far too long, ESGs have placed heavy and unnecessary burdens on our nation’s energy and food production industries, making it harder to produce these essentials domestically, while incentivizing imports of these goods,” LaMalfa said. “Small family farms are struggling financially to keep their operations up and running, they don’t have the funds to hire a full-scale environmental compliance department to meet the SEC’s ridiculous demands. Farmers are producing more food and fiber with less inputs like water, land, and labor than ever before. The SEC needs to think about the unintended catastrophic consequences this new rule will have on our nation’s farmers, and in turn our food supply.”