West Virginia’s attorney general is calling out the Securities and Exchange Commission for ”federal overreach and political activism” with its recent hint that corporations will soon have to disclose more to shareholders about how climate change affects their businesses.
In a fiery three-page letter to the regulator’s acting chair, Allison Herren Lee, Attorney General Patrick Morrisey blasted the plan as unconstitutional and an ”unprecedented and dangerous course.”
”Your proposal would in fact create a system with an unlimited number of additional mandatory statements,” Morrisey charged. ”This is federal overreach and political activism at its worst.”
Lee announced March 15 the agency will solicit public comment on the potential policy changes.
”It’s time to move from the question of ‘if’ to the more difficult question of how we obtain disclosure on climate,” Lee said in a speech before the Center for American Progress, a trade group, Bloomberg reported.
On Thursday, Morrisey shot back.
”The Commission should stick to its core mission of requiring statements on matters that are material to future financial performance — not statements on issues that drive a political agenda,” he wrote.
Morrisey asserts any change of that mission would allow the SEC to ”compel collection and disclosure of information to help some customers and investors advance prejudice and animus towards groups and activities they disfavor” — pointing to the controversial ”Boycott, Divestment and Sanctions” movement that targets Israel as one bad example.
”Your proposal … to compel statements on additional issues including workforce diversity, the numbers of part time and full time workers, workforce expenses, workforce turnover, political contributions, contributions to tax-exempt organization, and dues paid to trade association, is misguided,” he wrote.
”Your proposal would in fact create a system with an unlimited number of additonal mandatory statements. This is federal overreach and political activism at its worst.”
The Financial Times reported the SEC has told ConocoPhillips and Occidental Petroleum to hold shareholder votes on new emissions targets.
The SEC denied requests from both companies to dismiss shareholder motions that would require them to discuss in detail their plans for cutting certain emissions. The two oil companies said the proposals looked to micromanage their operations but the SEC said it was ”unable to concur” with this argument, the FT reported.
The SEC also didn’t agree with ExxonMobil Corp.’s request to let it block a resolution from BNP Paribas Asset Management that urged the oil giant to report if, and how, its lobbying activities aligned with global efforts to fight global warming — an early sign that U.S. regulators are less likely to side with companies on environmental, social and governance issues under President Joe Biden, Bloomberg reported.
Morrisey says he won’t stand by.
”West Virginia citizens will not support efforts to allow ‘mission creep’ in all of the federal agencies’ simply to advance a President’s political agenda,” he wrote.
”West Virginia will not permit the unconstitutional politicization of the Securities and Exchange Commission,” he added. ”If you choose to pursue this course, we will defeat it in court.”
Source: Newmax
