Corporate clients have been asking the G&A Institute team about recent developments at the U.S. Securities & Exchange Commission, which could affect corporate ESG disclosure and reporting. With the November 2020 election of a Democrat President and Vice President, the SEC now has a 3-2 balance – three Democrat, two Republican commissioners - with a Democrat in the chair, and the Commission seems poised to take action on ESG reporting.
The 51st Earth Day celebration took place on April 22, midweek of the wider Climate Week observations in the United States and many other lands. This year’s U.S. government participation is very different from 2020 and other recent years.
In our conversations with corporate clients, we often find ourselves saying “stay tuned” to evolving issues or topics. Lately, the tempo has picked up for that expression, with important corporate disclosure and reporting requirements in various stages of development around the world.
In this Issue Brief, G&A Institute addresses executives' latest questions on ESG disclosure and reporting practices. In corporate financial reporting, the team preparing public disclosures typically holds discussions with internal and external stakeholders around the materiality of information. Will each type of information if disclosed – or importantly, if omitted and not disclosed – influence investors’ decisions to "buy, sell, or hold"? In the historic Securities & Exchange Act of 1934, Section 14 prohibits material misrepresentations and omissions in the proxy statements sent to stockholders.