Important ESG Disclosure Recommendations from The SEC’s Advisory Group

On May 14, 2020, the Investor-as-Owner Subcommittee of the SEC Investor Advisory Committeemade new recommendations relating to ESG disclosure, calling sustainability “one of the most significant set of business factors” faced by issuers. The Subcommittee calls on the SEC to make sure the US takes the lead on transparent, material, consistent disclosure. The full report…

SEC panel says agency should add sustainability disclosure rules

The SEC should update its reporting requirements for issuers to include ESG factors, the commission’s investor advisory committee said Thursday, voting to approve a recommendation drafted by the committee’s investor-as-owner subcommittee. “The time has come for the SEC to address this issue,” said the recommendation. ESG disclosure from issuers will provide investors “with the material,…

Measuring What Matters

There is a groundswell of interest in metrics that go beyond our traditional financial view of companies. Many organizations have done extensive work on frameworks for ESG metrics, non-financial metrics, or integrated reporting, each targeted at a range of stakeholders including customers, employees, policymakers and investors. The challenge we often hear is that companies work…

Not Everything is About Investors: The Case for Mandatory Stakeholder Disclosure by Ann Lipton :: SSRN

his Article recommends that we explicitly acknowledge the importance of disclosure for noninvestor audiences, and discuss the feasibility of designing a disclosure system geared to their interests. In so doing, this Article excavates the historical pedigree of proposals for stakeholder-oriented disclosure. Both in the Progressive Era, and again during the 1970s, efforts to create generalized…

A Catch 22 for Asset Managers

Jasmin Sethi writes about the impact of concentrated voting power and calls for better disclosure of the exercise of ownership rights: The big three—BlackRock, State Street, and Vanguard—are victims of their own size. As they have increased their assets under management, they have also increased their voting power as typically they vote the shares for…

Climate Change Disclosures–More and Better

For more than 20 years, large companies have been ramping up the depth and breadth of their disclosure on GHG emissions. At the same time, the amount of forward-looking financial information on climate risks and the opportunities being provided to investors has been patchy at best. But in the short time since July 2017, following…

Outrageous Attack on Political Spending Disclosure Proposal at Disney

It is not just the name of the group objecting to disclosure of political spending that is oxymoronic; it is the vocabulary they use in trying to explain that a proposal to require disclosure of political spending is somehow contrary to notions of free speech instead of the only way to preserve it. The “Free…

“Free Market” Shareholder Proposal on Lobbying Disclosure at Caterpillar

A shareholder proposal on disclosing of lobbying priorities from the right-wing National Center for Public Policy Research’s Free Enterprise Project: At this week’s Caterpillar annual shareholder meeting, the National Center for Public Policy Research’s Free Enterprise Project (FEP) is asking company investors to support FEP’s shareholder resolution asking the heavy equipment manufacturer to report on…

A Very Disturbing U.S. Court of Appeals Decision About Corporate Disclosure Rules

The DC Circuit Court of Appeals has issued a very disturbing decision, ruling that corporations do not have to meet the Dodd-Frank requirements concerning disclosure of conflict minerals because it violates their First Amendment rights. The decision calls into question the authority of the government to require ANY disclosures by corporations. [T]his isn’t just about…