Natural Asset Companies


BREAKING : The New York Stock Exchange (NYSE) has withdrawn its proposal under consideration by the Securities and Exchange Commission (SEC) that would have allowed for the creation and listing of a new type of company called Natural Asset Companies (NACs) for public investment.

The Notice of Withdrawal can be accessed here: https://www.sec.gov/files/rules/sro/nyse/2024/34-99355.pdf.

Natural Asset Companies

Treasurer Oaks opposed a  New York Stock Exchange (NYSE) proposal that was 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) for public investment. The proposal posed 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.

In western states, where the federal government owns more than half of the land and is pushing for more conservation easements, the effect could be devastating. Natural Asset Companies could enroll the easements without the landowners' consent.

Treasurer Oaks said, "I am pleased by the NYSE’s decision to withdraw this dangerous proposal. I appreciate the efforts of so many to provide input to the SEC, NYSE, and their elected representatives. This news illustrates the impact of public engagement on important issues. It is my hope this news signals an end to this horrible idea and that it does not resurface in other venues."

 

Learn More 


In The News:

Contact:


Policy and Communications Deputy
Brittany Griffin
(801) 918-1411
[email protected]