This week, APGA submitted comments to the Securities and Exchange Commission (SEC) responding to their proposed rule outlining new requirements for certain investment advisers and investment companies to disclose additional information regarding their environmental, social, and governance (ESG) investment practices.
While the SEC’s Proposed Rule does not directly impose new requirements on public natural gas utilities, APGA provided feedback that it could be detrimental, as APGA members might be perceived as not caring about ESG. Also, as a part of the natural gas value chain, which does contain SEC-regulated entities, communities with public natural gas systems could experience impacts, including possible higher costs passed on by upstream entities, who may have enhanced reporting requirements. This new financial impact will be borne by APGA members and ultimately the communities they serve, which are not even regulated by the SEC.
APGA has no issue with the SEC’s goal to create a consistent, comparable, and decision-useful regulatory framework for ESG advisory services and investment companies. This will help inform and protect investors while facilitating further innovation. However, such a framework must encompass appropriate recognition of the important efforts of public natural gas utilities, in partnership with all in the natural gas value chain, to provide sustainable energy in an environmentally friendly way while practicing good governance.
To see APGA’s comments,
click here.
For questions on this article, please contact Stuart Saulters of APGA staff by phone at 202-544-1334 or by email at
ssaulters@apga.org.