Jina Choi and Christin Hill authored an article for The Review of Securities & Commodities Regulation discussing recent SEC enforcement activity and private litigation arising from ESG disclosures and offer key takeaways that companies should consider in connection with this evolving trend.
“Rules and regulations concerning Environmental, Social, and Governance (“ESG”) disclosures expanding rapidly. ESG disclosure remains at the top of the SEC’s rulemaking agenda. The SEC already requires “human capital” disclosures, prompting disclosure around the “social” element of ESG. Earlier this year, the SEC also proposed mandatory climate risk disclosures, including provisions that would require disclosure around carbon emissions in an issuer’s Form 10-K. State legislatures have also attempted to pass, or are considering, legislation around ESG issues. Most notably, several states have attempted laws aimed at increasing board diversity, or disclosure around board diversity”
Read the full article.