- Sep 24, 2021 2:33 pm GMT
This is BoD level information regarding the likelihood that environment, social and governance (ESG) reporting will become a requirement. Let me save you some time:
CORPORATE GOVERNANCE IMPROVEMENT AND INVESTOR PROTECTION ACT
The ambitious Act is wide ranging and includes eleven titles that address various areas of corporate disclosures including: ESG disclosures, shareholder political transparency, accountability in pay, climate risk disclosures, disclosure of tax havens and offshoring, workforce investment, preventing and responding to workplace harassment, cybersecurity disclosure, governance through diversity, disclosure of the use of forced labor, and other matters.
Despite a low likelihood of passage, the Act certainly signals to the recently appointed SEC Chairman Gary Gensler the expectations of the majority in Congress. What follows in this article is an examination of potential steps the SEC may take, even if the Act does not pass
Even before the power crisis, markets had already begun to favor companies that demonstrated ESG leadership. NextEra Energy and the AES Corporation, for instance, have acted on high-profile ESG commitments which tie into their respective financial strengths. Both companies have outpaced the utility industry's growth over the last two years.
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