Jan. 12, 2024
I am strongly opposed to “Natural Asset Companies” on the NYSE. Treasurer Oaks of Utah has stated the case in much better terms than I would use so I attach part of Treasurer Oaks remarks below. Glen Martin. Treasurer Oaks opposes a proposal under consideration by the Securities and Exchange Commission (SEC) that would allow for the creation and listing of a new type of company called a Natural Asset Company (NAC) on the New York Stock Exchange (NYSE). The proposal poses a significant risk to rural economies by creating a mechanism for public and private land to be permanently removed from productive use in the name of solving climate change. “The proposed creation of Natural Asset Companies is one of the greatest threats to rural communities in the history of our country,” Treasurer Oaks said. “Under the proposal, private interests, including foreign-controlled sovereign wealth funds, could use their capital to purchase or manage farmland, national and state parks, and other mineral-rich areas and stop essential economic activities like farming, grazing, and energy extraction. Recreating on Utah’s incredible natural lands could also face significant curtailment.” Unlike other types of companies, the purpose of a NAC is to maximize the value of the land’s “ecological services,” rather than generate a profit from traditional activities. "Unsustainable extractive activities" including energy extraction and the use of farm machinery and synthetic fertilizers, would be prohibited on NAC-managed land.