"ESG" disclosure remains a problematic concept for regulators: does it mean being energy efficient, or having minorities on the board of directors, or supporting specified political policies? These concepts do not have any common measurement, nor can they be reasonably aggregated in a way that would produce a meaningful number. (See also .)

What does this mean in practice? Don't lend to ski resorts or buyers of beach properties? Lend to air conditioner manufacturers?

Commissioner Allison H. Lee wrote a dissent that goes to the question of the proper role of the SEC.

Ms. Lee argues that the reduced disclosure requirements will result in a loss of information to investors, which reduction is to the detriment of investors. This argument, with which one may agree or disagree, is straightforward. Concerns as to the adequacy of disclosure are central to the mission of the SEC.

The second basis of Ms. Lee's argument requires closer attention. She…

The promulgation of regulation is always on an upward trend. The President's Executive Order offers a moment to consider discarding regulations that are outmoded or an economic drag. To advocate the reversal of the trend is not to suggest caveat emptor. Rather, it is to suggest that perhaps 50,000 rules are unnecessary where 40,000 would suffice. Yesterday's story offers a good example. Prohibitions in Section 11(d) of the Exchange Act are now almost 90 years old and are simply no longer…