Business groups are trying to calculate just how much money public companies might have to shell out to comply with the Securities and Exchange Commission’s planned new “woke” corporate disclosure rules, and initial estimates aren’t pretty.
FOX Business has discussed the costs with Wall Street executives, analysts and think tank leaders, and while no exact estimate can be determined, the SEC’s new disclosure mandates involving everything from the environment to board diversity is likely to cost U.S. public companies well into the billions of dollars.
Securities and Exchange Commission Chair Gary Gensler, known for his progressive leanings, has put at the top of the commission’s voting agenda new rules that will mandate disclosing information on so-called ESG or Environmental, Social, Governance issues. These issues involve a public company’s commitment to alleviate climate change and other non-financial disclosures.
Gensler met with President Biden and other top financial regulators on Monday to discuss climate-related financial risks and how regulators can push the president’s green and social agenda through edicts aimed at public companies. Gensler has said such disclosures are being demanded by a new breed of investor looking to make corporate America more socially responsible.
But critics such as business groups, and GOP lawmakers say the move by the SEC is part of a broader effort by the Biden administration to force companies to embrace a progressive social agenda. They also contend the commission is exceeding its authority that has traditionally focused on protecting small investors from financial fraud. Read more…