API Raises Concerns with New SEC Risk Disclosure Rule

WASHINGTON, March 6, 2024 — The American Petroleum Institute (API) released the following statement today from API Senior Vice President and Chief Counsel Ryan Meyers on the U.S. Securities and Exchange Commission’s (SEC) release of its final climate-related risk disclosure rule:

“Despite some changes by the Commission, this flawed rule will still subject investors to countless billions in additional costs without meaningfully advancing a dialogue on climate that has been occurring for many years between companies and their shareholders. The Commission should have reproposed the rule for further input in light of its statutory obligation to protect investors, maintain well-functioning markets and ensure capital formation.”

API submitted comments on the SEC’s proposed rulemaking in June 2022. In the comments, API reiterated its support of timely and accurate reporting of greenhouse gas emissions from all emitting sectors while raising concerns that the proposed rule would overwhelm investors with information they do not seek while imposing historic costs on companies and their shareholders.

Advancing climate reporting is a central pillar of API’s Climate Action Framework and API has worked with international partners for over 20 years on oil and natural gas industry sector-wide guidance for sustainability reporting. In addition, API developed the Guidance Document for GHG Reporting, which is intended to offer further consistency, comparability, and clarity of information to the industry’s key stakeholders.

API represents all segments of America’s natural gas and oil industry, which supports nearly 11 million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. Our approximately 600 members produce, process and distribute the majority of the nation’s energy, and participate in API Energy Excellence®, which is accelerating environmental and safety progress by fostering new technologies and transparent reporting. API was formed in 1919 as a standards-setting organization and has developed more than 800 standards to enhance operational and environmental safety, efficiency and sustainability.

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