Republican officials reject the SEC’s proposal to stifle investment in greenwashing.

Treasurers, auditors and controllers in 21 states are urging the Security and Exchange Commission (SEC) to drop proposed rules that require investment in the marketing of funds labeled environmental, social and governance (ESG) to disclose additional information to investors.

The proposed rule aims to combat the practice of “greenwashing”, potentially misleading marketing investments under the ESG label.

GOP public finance officials, including those from Texas, Arizona and Georgia, say the agency is crossing borders and acting as a climate regulator, according to a letter sent to the SEC last week by the Public Finance Officers Foundation, a group of government cashiers and auditors.

The proposed changes will require companies to report more information on the non-financial impact of their operations, with supporters arguing that investors deserve to have as much information as possible about how issues such as climate change could affect the company’s future.

Louisiana Treasurer John Schroeder, one of the officials who signed the letter, told The Hill that the new regulations are trying to control how investors spend money and have “nothing to do with the economy.”

“With everything that’s happening, I don’t want to hear about energy diversification, when the average person needs $ 100 to fill a tank of gas,” Schroeder said. “We will force the common man in this country to start choosing between petrol and blood pressure medicine.

Schroeder said SEC regulations bypass the legislative process and take away state power to dictate their own economic future.

“What do we need state houses for anyway, if the federal government is going to weigh everything in your life?” Schroeder said.

In the letter, government officials also say the rules violate the First Amendment, forcing issuers to talk in detail about their impact on climate change, and say the new regulations will raise energy prices.

State-level pressure on the SEC to abandon new potential changes coincides with the GOP’s national figures, which oppose the agency on the issue.

Last week, spokesman John Rose (R-Tenn.) Said at an ESG summit hosted by The Hill that he expected GOP lawmakers to fight to repeal the agency’s rules if the party took control of the hall in the interim terms. , because some forecasts predict.

The proposed rules came when the SEC began to fight a practice called “greenwashing”, when fund managers use misleading information to attract investment from ESG funds.

ESG investing is an increasingly popular propensity for investors to make capital decisions based not only on the likely financial return, but also on the company’s impact on the environment, the wider society and its own employees.

Democrats defended the proposed changes, citing the urgency of climate change for the government to act. At The Hill last week, Andy Levin (D-Mich.) Said investing in ESG funds was becoming increasingly important because of the “five-alarm emergency” that climate change was creating for the planet.

“We want plans to offer ESG options, we want clarity on some guardrails, so we can’t have this green wash, we can’t have these false claims,” ‚Äč‚ÄčLevin said at the event. “I’m glad the SEC is getting stronger … but I think Congress needs to act, too.

The SEC has extended the public consultation period on its proposed reporting rules until mid-June.

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