The House has passed legislation to require the SEC to issue new rules on ESG disclosure. While it is unlikely that it will get a majority vote in the Senate, it bolsters the SEC’s own efforts.

An excerpt:

(3) Investors have reported that voluntary disclosures of ESG metrics are inadequate.

(4) A rule requiring reporting and standardization of ESG disclosures is in the interest of investors.

(5) ESG matters are material to investors, and the Commission must establish standards for disclosure of such matters.

[These rules would require]

(A) a clear description of the views of the issuer about the link between ESG metrics and the long-term business strategy of the issuer; and

(B) a description of any process the issuer uses to determine the impact of ESG metrics on the long-term business strategy of the issuer.

The legislation would allow the SEC to give smaller issuers extra time.