House Republicans hit SEC on climate disclosure

Twenty-one House Republicans led by Rep. Bill Posey (Fla.) are alleging that a Securities and Exchange Commission initiative that presses companies to disclose information about climate risks will hurt corporations and investors alike.

In a letter to the SEC Monday, the lawmakers criticize the SEC’s recent “guidance” to public companies -- they call it an “onerous new mandate” and note that it wasn’t steered through Congress or a formal rule-making process.

The lawmakers allege the initiative will create confusion and uncertainty for companies.

“Currently, there are no federal laws explicitly addressing climate change – including its potential impact on the economy,” the letter states. “It is inappropriate to force companies to speculate on how unpredictable, and distant, environmental shifts may effect market performance.”

The House members say the SEC guidance will prompt disclosures that distract investors from more relevant information. They also say the SEC’s time would be better spent protecting the public from threats like disgraced money manager Bernie Madoff’s Ponzi scheme.

Sen. John Barrasso (R-Wyo) agrees with the House Republicans. Green investing advocates, on the other hand, don’t. I noted the views of both sides here.