Back to overview

ESG DISCLOSURE SIMPLIFICATION ACT OF 2021

United States of America Forthcoming 2021

Subsection 2(a) of this bill amends section 14 of the Securities Exchange Act of 1934 (15 U.S.C. 78n) by adding a new subsection (k). The new subsection (k) would require issuers that have registered securities, or that file annual reports, to disclose in any proxy or consent solicitation material for an annual shareholder meeting: a clear description of the link between environmental, social, and governance (ESG) metrics and the issuer’s long-term business strategy; and any process the issuer uses to determine the impact of these ESG metrics on its long-term business strategy. Subsection 2(b)(1) of this bill would require the Securities and Exchange Commission to promulgate rules to define and require the disclosure of ESG metrics.

Issuer name

Committee on Financial Services

Government ministry

Finance/Treasury

Organizations covered by the instrument

Large private and listed companies

Industry scope

All/none specified

Status

Forthcoming

Country

United States of America

Region

North America

Date of publication

2021

Issuer type

Governments (governmental department, agency)

Reporting requirements

Public law and regulation

Mandatory or voluntary

Mandatory

The geographical scope

National/federal

Go to the instrument