AXPC Statement on SEC Climate-Related Disclosures

WASHINGTON – March 23, 2022 – Today, American Exploration and Production Council CEO Anne Bradbury released the following statement about the Securities and Exchange Commission’s (SEC) vote to propose new climate disclosure rules that, if finalized, would overhaul how public companies disclose climate-related risks:

AXPC appreciates the importance of the SEC’s mission to protect investors, maintain fair, orderly, and efficient markets, facilitate capital formation, and promote public trust in the market. 

As materiality has historically been key to SEC’s overall regulatory approach, and central to disclosure requirements, we believe materiality should also govern any potential revision of those disclosure rules related to climate-related risks. SEC should view materiality with respect to climate in the same manner that it has traditionally done in other areas, and as the concept is generally understood.

Portions of the SEC’s proposal that would require companies to make non-material disclosures in their SEC filings may create confusion for investors and capital markets, disincentive aspirational climate commitments, and ultimately exceed the bounds of the Agency’s authority granted by Congress. 

Our industry is committed to transparency, collaboration, and engagement on climate solutions, but that does not necessarily mean that securities laws are the appropriate context for all climate-related disclosures.  As the Commission pursues a final rule, we encourage them to collaborate with our industry and build on existing efforts underway to further consistency and comparability of climate-related reporting. 

Background:
The SEC voted this week to propose climate disclosure rules that, if finalized, would require publicly listed companies to disclose information including how extreme weather events and the transition to a lower-carbon economy might affect their business in existing SEC filing forms.  The proposal also requires companies to provide more details about how a company would achieve emissions reductions goals. 

About the American Exploration and Production Council:
AXPC is a national trade association representing the largest independent oil and natural gas exploration and production companies in the United States. We lead the world in the cleanest and safest onshore production of oil and gas, while supporting millions of Americans in high-paying jobs and investing a wealth of resources in our communities. Learn more at https://www.axpc.org/

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