Fossil fuel companies are the target of SEC's climate disclosure rule, according to Joe Manchin.

• The Securities and Exchange Commission's proposed climate disclosures have caused Sen. Joe Manchin, D-W.Va., great concern.
• The senator said the proposal unfairly targets fossil fuel companies.
• Machin stated in a letter to the SEC on Monday that the proposed rules appear to politicize the process of evaluating a public company's financial stability and adherence to regulations.

The Securities and Exchange Commission's proposed climate disclosures have caused Sen. Joe Manchin concern, as he stated on Monday.

The West Virginia Democrat wrote to the SEC, arguing that the proposed policies conflict with the SEC's mission and will impose "undue burdens" on companies, particularly those in the fossil fuel industry.

"The targeting of our nation's fossil fuel companies is the most concerning aspect of the proposed rule," he wrote.

The SEC unveiled proposed rules on climate disclosures on March 21. Under these rules, companies would be obligated to disclose information on greenhouse gas emissions, climate-related targets and goals, and the ways in which climate risks affect their business operations.

Nearly two-thirds of companies in the Russell 1000 index release sustainability reports, according to Manchin, who stated that the proposed changes are unnecessary for several reasons.

Companies have varying reporting practices for these reports, with limited oversight on the information they disclose. Collecting and verifying climate data can be difficult.

The letter argues that it is shortsighted to propose that all public companies possess the resources and abilities to obtain this data. Manchin contends that imposing such requirements on companies could cause financial difficulties and harm public trust.

Manchin, a conservative Democrat in the Senate, opposes key policy proposals supported by Democrats, including President Biden's Bill Back Better Bill. He has financial ties to the coal industry and regularly receives donations from fossil fuel executives, including Ryan Lance and Vicki Hollub.

Manchin criticized the SEC's proposed rules for politicizing the evaluation of public companies' financial health and compliance, particularly with regards to the disclosure of Scope 3 emissions, which are challenging to track.

The proposed rule by the SEC requires tracking of Scope 3 emissions "when significant."

Manchin pointed out that some companies already provide data to the Environmental Protection Agency, so adding more data reporting requirements would be unnecessary and burdensome for public companies, potentially confusing investors.

Manchin concluded that the implementation of rational rules is necessary to ensure fairness in the system, and that reevaluating the energy companies' responsibilities within the disclosures is crucial to achieving that fairness.

The 60-day public comment period is ongoing for the SEC's new rule.

— CNBC’s Thomas Franck contributed reporting.