Democrat-led ESG rules will 'kill' Main Street, CEO warns

After BlackRock CEO Larry Fink admitted there’s a "structural problem" with proposed environmental, social, and corporate governance (ESG) requirements, one banking executive is saying the investment head is right.

"If the Biden administration, through the SEC, has its way and all SEC-registered companies have to do this climate-carbon emissions testing, including on small businesses, it's going to kill Main Street, where 60% of Americans work," Florida Bankers Association President and CEO Alex Sanchez said on "Mornings with Maria" Wednesday.

In a pre-recorded interview from the Oslo Energy Forum, Fink chimed in on the debate around companies possibly being forced by the U.S. Securities and Exchange Commission to disclose all levels of ESG risks – classified as Scopes 1, 2 and 3 – as there’s a "structural problem" preventing corporations from doing that.

"Companies are very willing to report one and two," Fink initially pointed out. "But to report Scope 3, then you were reporting on your supply chains and most of your supply chains are private companies on the supply side."