Pushing Back Climate Disclosures from FASB

What this means

A factual summary is pending editorial review. The complete official release is reproduced below with issuer attribution and a direct link to the original publication.

Official release

Source material from Oklahoma Office of the State Treasurer. The wording below is the issuer’s statement.

Pushing Back Climate Disclosures from Financial Accounting Standards Board

Tweet

Email

Wednesday, August 14, 2024

Oklahoma State Treasurer Todd Russ and 25 other state financial officers wrote to the Financial Accounting Standards Board (FASB) on the harmful reasons in politicizing the Generally Accepted Accounting Principles (GAAP) if adding sustainability reporting standards. The&nbsp;<a href=\"https://oklahoma.gov/content/dam/ok/en/treasurer/documents/news/FASB_Letter.pdf?utm_medium=email&amp;utm_source=govdelivery\">letter</a>&nbsp;addresses inconsistencies with core GAAP principles when requiring specific climate-reporting rules. Noting lack of principles in:</p>\r\n<ul>\r\n<li>Materiality, as transition and physical risk is not material to corporate and commercial or residential real estate loans</li>\r\n<li>Sincerity, as it would promote a partisan agenda to achieve the goals of the Paris Agreement</li>\r\n<li>Prudence, as it calls for speculation about the existence and impact of possible future climate-related laws and regulations</li>\r\n</ul>\r\n<p>Incorporating climate-disclosure rules into GAAP will politicize its standard-setting process making companies incur substantial expenses without any corresponding financial benefit to investors and risking significant litigation.</p>\r\n<p>Calling out the SEC climate risk disclosure rule, among other frameworks around the world, as regulations &quot;the purport to be about financial reporting but in reality are about commandeering the financial system to advance a substantive climate agenda that has not been democratically approved in the United States.&quot;</p>\r\n<p>Furthermore, the only part of our government having the authority to require these rules is Congress, who has chosen not to do so. It is not the job for the FASB to act unilaterally, imposing climate-related standards when safety and soundness should be their primary focus.</p>\r\n"}}" id="text-9617cad54f" class="cmp-text">

Oklahoma State Treasurer Todd Russ and 25 other state financial officers wrote to the Financial Accounting Standards Board (FASB) on the harmful reasons in politicizing the Generally Accepted Accounting Principles (GAAP) if adding sustainability reporting standards. The letter addresses inconsistencies with core GAAP principles when requiring specific climate-reporting rules. Noting lack of principles in:

Materiality, as transition and physical risk is not material to corporate and commercial or residential real estate loans

Sincerity, as it would promote a partisan agenda to achieve the goals of the Paris Agreement

Prudence, as it calls for speculation about the existence and impact of possible future climate-related laws and regulations

Incorporating climate-disclosure rules into GAAP will politicize its standard-setting process making companies incur substantial expenses without any corresponding financial benefit to investors and risking significant litigation.

Calling out the SEC climate risk disclosure rule, among other frameworks around the world, as regulations "the purport to be about financial reporting but in reality are about commandeering the financial system to advance a substantive climate agenda that has not been democratically approved in the United States."

Furthermore, the only part of our government having the authority to require these rules is Congress, who has chosen not to do so. It is not the job for the FASB to act unilaterally, imposing climate-related standards when safety and soundness should be their primary focus.

Last Modified on

Aug 14, 2024

Release text attributed to Oklahoma Office of the State Treasurer. Consult the official publication for any subsequent corrections or updates.