Summary
This act aims to reduce the reporting burden on companies while promoting more consistent and comparable ESG disclosures. It would require the Securities and Exchange Commission (SEC) to review and consolidate its ESG disclosure requirements and issue new regulations that reflect current market practices and investor needs. The act also requires the SEC to take into account the materiality of ESG information and the costs and benefits of reporting, and to ensure that any new regulations are aligned with international reporting frameworks. The ESG Disclosure Simplification Act of 2021 is intended to provide investors with the information they need to make informed investment decisions while reducing the reporting burden on companies and promoting greater consistency and comparability in ESG disclosures.