Section 5.1 - Q5 - What Does Project 2025 Say?

“[Congress should] Prohibit the SEC from requiring issuer disclosure of social, ideological, political, or “human capital” information that is not material to investors’ financial, economic, or pecuniary risks or returns. The proposed SEC climate change rule, which would quadruple the costs of being a public company, is particularly problematic.”

Citation: Project 2025, Section 5.1: Financial Regulatory Agencies, David R. Burton, page 864, paragraph 1

Context:

This would stop the SEC from mandating disclosures on non-financial issues like climate change, diversity, or other social/political topics unless directly relevant to financial risk. Investors who value social, environmental, or governance information might find themselves lacking crucial data on companies’ practices.

The suggestion that requiring this disclosure would “quadruple” the costs of being a public company is transparently ludicrous (and it’s possible that this is a typo by which he means it would quadruple the regulatory costs of being a public company), but it’s not cheap, either. Dechert, LLP lists the estimated costs on their website, which vary by the types of disclosures the company would require.

Full contextual analysis of Section 5.1: Financial Regulatory Agencies here.

Section: Section 5.1: Financial Regulatory Agencies

Categories: “Woke” Ideology, Climate Change, DEI, Deregulation, The SEC