Dive Brief:
- Donald Trump has selected Paul Atkins, an advisor in financial services and former regulator, to head the Securities and Exchange Commission (SEC), as noted in a statement shared on his social media platform, Truth Social.
- Currently, Atkins serves as CEO of Patomak Global Partners, a consultancy he started in 2009. Before that, he was an SEC commissioner from 2002 to 2008, where he advocated for more transparency within the agency.
- His appointment has raised alarms among experts focused on Environmental, Social, and Governance (ESG) issues, who fear he may reverse initiatives introduced by the current SEC chair, Gary Gensler. According to Michael Posner from NYU’s Stern School, Atkins’ leadership could lead to less emphasis on ESG regulations.
Dive Insight:
In his December 4 post, Trump described Atkins as a “proven leader for common sense regulations,” emphasizing his belief in the potential of innovative capital markets and digital assets.
Atkins has expressed different views compared to Gensler, especially regarding climate disclosures. When Gensler proposed a climate-risk disclosure rule in March 2022, Atkins and other former SEC leaders criticized it for overstepping regulatory boundaries.
Gensler’s original proposal required companies to disclose various details about their climate risk management and emissions, including scope 3 emissions if deemed significant. However, the final rule approved in March removed the requirement for scope 3 disclosures and reduced some reporting obligations for scope 1 and scope 2 emissions.
Posner noted that under Atkins, the SEC may revert to the idea that ESG considerations are not essential for decision-making. He suggested that Atkins might operate with a “light footprint” in regulating the industry.
Posner characterized Atkins as favoring free-market principles and likely to disregard environmental concerns that clash with corporate profits. His focus appears to be on short-term profitability for companies.
The pro-ESG group, Unlocking America’s Future, shared similar concerns, suggesting Atkins’ nomination aligns with Trump’s intent to weaken ESG initiatives. They warn that his leadership could undermine progress on responsible investing and transparency in climate disclosures.
Ben Cushing from the Sierra Club also raised concerns, highlighting the potential risks of Atkins’ nomination for investors and the broader market regarding climate-related financial risks.
If confirmed, Atkins would return to the SEC for a third time, having previously served during both Republican and Democratic administrations. His experience includes roles during George H. W. Bush and Bill Clinton’s presidencies.
Lamar Johnson contributed to this report.