JCNF Press ReleaseJune 25, 2024

Job Creators Network Foundation Files Brief Demonstrating Small Business Burdens of New Securities and Exchange Commission Climate-Change Regulations

June 24, 2024 – Today, the Job Creators Network Foundation filed an amicus brief in Iowa v. SEC, the legal challenge to a Securities and Exchange Commission rule that would require publicly traded companies to report climate-related risks in their annual reports and registration statements. In its brief, JCNF’s Legal Action Fund argues that the disclosure rule exceeds SEC’s statutory authority and would impose new burdens on millions of small businesses who are privately-held and sell goods and services to publicly traded companies.

Read the amicus brief here

The brief highlights the potential impact of the rule on two Job Creators Network advocates Carlos Ruiz, Owner/Operator of HT Metals and Guy Berkebile, Founder of Guy Chemical. Ruiz and Berkebile’s stories demonstrate the harm these regulations will have on millions of small businesses who do not have the internal personnel to assess and, in many – if not most, cases would not even know where to start in assessing and reporting any climate-related risks their companies face. 

“SEC’s rule is just another example of unelected bureaucrats pushing down new mandates on businesses without any consideration of the detrimental impact they will have on America’s job creators,” said Elaine Parker, President of the Job Creators Network Foundation. “Congress has not authorized SEC to demand this data and the vast majority of small business owners across the country would not even know where to begin if and when they are asked to provide climate-related risk information to the public companies to whom they sell.” “While SEC smartly eliminated the Scope 3 requirements in its proposed rule that would have affirmatively required small businesses who aren’t even in SEC’s jurisdiction to report this information, questions remain about the applicability of the rule to many small businesses. And there is no doubt that the tremendous burdens these new mandates impose on business will cascade down to millions of small businesses is real.”

JCNF Legal Action Fund is represented by Mountain States Legal Foundation in this case.