Rising

CEO calls new SEC regulations a 'regulatory overreach' and 'punitive'

CEO Dan Eberhart of Canary LLC, an oilfield services company, said in a Hill.TV interview that new climate change disclosure rules from the Securities and Exchange Commission (SEC) equate to "regulatory overreach."

Eberhart told Hill.TV's "Rising" that the requirements for businesses will "push up the energy costs for consumers" and is "punitive against public oil companies in the U.S." 

Under the Biden administration, the Securities and Exchange Commission (SEC) will require public companies to disclose how operations contribute to climate change and what is being done to comply with greenhouse gas emission guidelines.

Former Acting SEC Chair Allison Herren Lee released a statement in July that laid out the update to disclosure requirements. The SEC will evaluate how companies follow climate change guidelines from 2010, discuss the climate-related disclosures with companies, then examine the impact of climate risks on the stock market. The commission will then update the guidelines, most likely resulting in an expansion of disclosure from companies on how their business affects the environment.

While Eberhart said he agrees with the disclosure requirement, he argued that the "right forum should be with the Environmental Protection Agency."

Eberhart went on to say that instead of "requiring an analysis of companies' supply chain as well as the consumers using its products," the government should enforce reports on "core operations and the climate impact and what the company can do to mitigate that."

"It's well-intentioned, but will completely misfire," Eberhart said.