Ex-SEC Chair Calls on Congress to Lead Climate Policymaking

Climate change policymaking matters are best left to Congress rather than the SEC, former agency Chairman Jay Clayton said Tuesday during a US Chamber of Commerce event.

Clayton’s remarks came as the Securities and Exchange Commission fights to save its corporate emissions disclosure rules, which are paused amid litigation in the US Court of Appeals for the Eighth Circuit. The Chamber is one of the groups that has sued over the rules, arguing the SEC lacked statutory authority from Congress to create the regulations.

Lawmakers abdicated responsibility by asking the SEC to tackle climate issues, said Clayton, who served during the Trump administration. Sen. Elizabeth Warren of Massachusetts and other Democrats had urged the SEC to require companies to disclose their risk from climate change before the agency issued its rules in March, saying the regulator has the power to act.

“Stay in your lane,” Clayton said, referring to the SEC. “Congress should do its job.”

• Democratic lawmakers have pushed the SEC to ensure companies follow existing guidance encouraging environmental disclosures while the rules are paused.
• The agency has said the rules meet investors’ demand for more information about climate risks.
• The SEC has vowed to “vigorously” defend the regulations in court.