The 500+ page draft was released in March and is now in a required public comment period (that SEC extended until mid-June). It should be expected there will volumes of responses to SEC and we’ll likely see a final version by year-end 2022.
EO14030 - May 20, 2021 The Biden-Harris Administration “Whole of Government” approach to meeting the many challenges of climate change is wide and deep, and policies, programs, actions taken by the federal government to address “the climate crisis” will affect many companies and business interests.
Thoughts on More Expansive Corporate Supply Chain Disclosure & Reporting by a Veteran Investor Relations Professional
Addressing Climate Change Issues Across “The Whole of Government” in the United States
Corporate execs and managers wrestle with the answers to the critical questions in the internal discussions about ESG / sustainability Key Performance Indicators and ESG Metrics to publicly disclose. Which? Why? How? Who want this information
Two aspects were being considered with a Draft Rule now made Final: (1) accommodating more Principles- based corporate reporting; and (2) requiring or encouraging expanded disclosure related to Human Capital Management (HCM). The disclosure rule is about to go into effect. We’ve created a Resource Guide to help managers understand the background of these developments with information about the Final Rule.
One of the most important trends in sustainability that the G&A Institute team tracks is the mainstreaming of ESG rankings and ratings alongside the traditional financials.
G&A’s research team examined the ESG / sustainability reporting practices of the BRT signatory corporations, and released a resource paper with the results including additional perspectives from G&A; detailed analysis of reporting practices (such as trends in usage of reporting standards like GRI, SASB, TCFD, and the SDGs); Harvard Business Review “Top 100 Global CEOs” crossover with BRT members, and links to external related resources and information.
To help identify the data and information needed by investors, lenders, and insurance underwriters to appropriately assess and price climate-related risks and opportunities, the Financial Stability Board (FSB) established an industry-led task force to develop disclosure recommendations: The Task Force on Climate-related Financial Disclosures (TCFD).
Asset managers are also developing their own internal, proprietary methodologies for evaluating their investments, for their own accounts and on behalf of their fiduciary clients. A primary example is State Street Global Advisors (“SSGA”), one of the world’s leading asset managers.