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Sunday, October 4, 2020

Allison Lee -- Trump's SEC Commissioner -- she's pretty, and a climate science fool

SUMMARY:
SEC Commissioner Allison Lee had an op-ed in a September edition of the New York Times, cheerleading for more corporate disclosure of climate risks. She has no idea what’s she’s talking about.

Real photo of Ms. Lee, imaginary photo of me, and real photo of me:





 

 

 

 

 

 

 



NOTE:
Ms. Lee quotes are in italics ,
while my comments
are in bold highlighted print:


DETAILS:
Securities laws require data on all sorts of things, such as executive compensation. The SEC already requires disclosure of ‘climate risks’ -- but there are no specific requirements for fantasies about future climate risks. Voluntary disclosures in recent years are not standardized, or consistent, Voluntary disclosure is not getting the job done, according to Commission Allison Lee, who failed to offer even one example in her op-ed.


"We can bring companies, investors and innovators to the table, and build on the work of organizations such as the Task Force on Climate-Related Financial Disclosures to identify which specific climate risks and metrics should be disclosed and how."   
But if there were no U.S. CO2 emissions from now on, the difference in atmospheric CO2 concentrations would be very small by 2100. ... Maybe the planet will average one degree C. warmer by 2100, or maybe not.  So what?



"That’s the only way to get investors and the broader public the tools they need to protect their investments, instill corporate accountability and create a sustainable economy."   
‘Sustainable’ is a meaningless generic term. High percentages of solar and wind power significantly increase the risk of brownouts and blackouts.
 


"U.S. environmental policy has moved dangerously backward, with nearly 70 environmental rules reversed during this administration, and 30 more reversals in process."  
Commissioner Lee is a Democrat who favors overregulation.



"Many large businesses and their investors, recognizing the urgency of the threat, are already attempting to protect their assets and investments from climate risks."   
Why would businesses need to protect themselves from beneficial global warming ... that is mainly in the colder, higher latitudes, mainly in the coldest six months of the year, and mainly at night?  And more CO2 in the atmosphere accelerates plant growth, as every intelligent greenhouse owner has known for many decades. That's good news.



"They (businesses) know that a significant percentage of the U.S. equity market, as much as 93 percent by one estimate, is already exposed to harms from climate change, with this year’s intensified fire and hurricane seasons offering a devastating preview of more to come."   
Clueless Ms. Lee must not realize that 2019 had a very low number of acres burned by wildfires in California. Did global warming cause that too?   As California and Oregon burned in 2020, western Canada had a quieter than usual wildfire season.  Did global warming cause that too?  I suppose a small number of acres burned is "weather". And a large number of acres burned is "climate change".



"Both investors and the broader public need clear information about how businesses are contributing to greenhouse gas emissions, and how they are managing — or not managing — climate risks internally."
Almost every business relies on fossil fuels. What do the business cars and trucks use for fuel?  What do their employee's cars and trucks use for fuel?  And how do businesses prepare for harmless and unpredictable climate change? ... California is not burning because ExxonMobil sells oil. It’s burning because the state and federal government don't manage California forests.



"A core purpose of the Securities and Exchange Commission, where I serve, is to develop and enforce disclosure requirements for public companies rooted in the interests of investors and the public. Outdated thinking is stopping us from reducing climate risk through strengthening disclosure." 
Disclosure of material risks is already required, and does nothing to reduce climate risk.



"One prominent outdated notion is that  — known in the industry as E.S.G. (investments made on the basis of environmental, social and governance risks) — are merely about one’s policy preferences or moral choices. That might have been closer to reality over a decade ago, but as E.S.G. investing has grown and matured, so too has an understanding of its value. 
" ESG" is the corporate term for “political correctness.”, which means agreeing with leftists so they don't boycott your business. ... Investment managers have a fiduciary duty to maximize returns for investors, not to do ESG investing



"Dealing with and adapting to the coming calamities means we must price climate risk accurately". 
Markets already do this.


"As a former S.E.C. enforcement lawyer who spent over a decade spotting failed and misleading disclosures, I can attest that enforcement of broad-based materiality requirements does not work with this kind of near-magical efficiency."    
   Will the SEC spend less time searching for financial fraud in financial statements, and spend more time analyzing wild guess climate change predictions?  That makes no sense, nor does Allison Lee.