# Plain Language Summary: Congressional Disapproval of SEC Climate Disclosure Rule

This bill would kill a new rule from the Securities and Exchange Commission (SEC) that requires publicly traded companies to disclose information about their climate-related risks and environmental impact to investors. If passed, the rule would be completely canceled and companies would no longer have to follow it.

Here's what this means in practical terms: Right now, when you invest in a company through a stock or mutual fund, you get financial information about how the company is performing. The SEC's new rule would have required companies to also tell investors about climate risks—things like whether their business could be hurt by extreme weather, whether they rely on fossil fuels, or how much greenhouse gas they produce. The idea was to give investors the same kind of transparency about climate issues that they already get about finances. This bill says "no thanks" to that requirement and would prevent it from taking effect.

Who this affects depends on your perspective. If you're an individual investor, you'd lose access to standardized climate information that could help you make informed decisions about where to put your money. If you own a business, you'd avoid the costs and effort of collecting and reporting this climate data. Environmental advocates argue that without this transparency, investors can't properly assess long-term risks to their investments. Business groups counter that the reporting burden is expensive and that climate information is already available through other means. Essentially, this bill is Congress saying it doesn't want the federal government requiring companies to standardize how they report climate information to investors.

Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Securities and Exchange Commission related to "The Enhancement and Standardization of Climate-Related Disclosures for Investors".

Huizenga, Bill

 <p>This joint resolution prospectively nullifies the rule proposed by the Securities and Exchange Commission titled <em>The Enhancement and Standardization of Climate-Related Disclosures for Investors</em> on April 11, 2022. The proposed rule requires registrants to disclose their climate-related risks. </p>