One of the recurring problems in consumer protection is the way government officials so often use their powers to push special interest policy preferences and serve political allies rather than everyday consumers. Look no further than reports that the Securities and Exchange Commission, under its new, Biden-appointed chairman Gary Gensler, is preparing to mandate disclosures by public companies regarding climate change and other so-called environmental, social, and corporate governance (ESG) issues.
Setting aside the question of whether these disclosures have real value in the greater debate over climate change and whether it makes sense to mandate them for all companies, the most obvious outcome of any new S.E.C. mandate will be the thump of lawsuits hitting court dockets and the jingle of shareholder money flowing into the pockets of the trial lawyers who just happen to play a major role in a major role in getting President Biden into the White House.
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