Biden Administration’s New ‘Woke’ Corporate Disclosure Rules Will Cost Companies Billions, Experts Warn

Who knew virtue-signaling could be so expensive?

Under the Biden administration’s leadership, the Securities and Exchange Commission (SEC) has proposed new “woke” corporate disclosure rules. A new form of social-justice-based financial regulation, the federal agency’s rules would mandate that companies track, report, and disclose a wide array of data on issues such as climate change emissions and diversity. 

This might poll well or look nice at first glance. But like any complex federal regulation, the woke reporting rules will have many unintended consequences—namely, they’ll cost businesses billions.

“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 reports. “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.” 

The goal of the SEC regulation is to promote environmentalism and racial equality, with regulators likely having good intentions. But they are either unable or unwilling to foresee the adverse consequences that could accompany this virtue-signaling effort.

Heritage Foundation senior fellow David R. Burton, a specialist in tax and financial regulation, laid out the many ways these rules will likely backfire in a letter to the SEC

He agreed that “requiring all public companies to develop climate modeling expertise, the ability to make macroeconomic projections based on these models and then make firm-specific economic assessments based on these climate and economic models will be expensive,” likely costing billions.