Post by sweetpea33 on Jan 23, 2024 21:19:01 GMT -8
One potential path that we should consider is the development of a dedicated standard setter for ESG (similar to FASB) under SEC oversight to devise an ESG reporting framework that would complement our financial reporting framework. Precisely because the risks and opportunities related to climate and ESG cut across all manner of boundaries, the SEC must do its part, in concert with market participants and regulators around the globe, to address these issues.
The lack of common benchmarks and standardized language will continue to inhibit to some degree competitive dynamics around managing climate and other ESG risks. (Even) more work ahead Having covered a lot of ground today, I still haven’t reached all the places climate and ESG intersect with the SEC’s regulatory mission. Email List Consider for example, ESG funds. We recently issued an investor bulletin to help investors understand the different potential ESG strategies funds may pursue. We are working towards enhanced transparency around proxy voting. But we should consider additional steps such as, for example, an ESG-specific policies and procedures requirement.
In other areas, what steps should we take to enhance the reliability around existing climate and ESG disclosures, including potentially requiring auditor attestation of current voluntary sustainability reporting? And should the [Public Company Accounting Oversight Board] establish better standards or guidance for how auditors currently address companies’ climate and ESG-related financial statement disclosures? How also do we encourage enhanced transparency by credit rating agencies regarding how they consider ESG factors? This is by no means an exhaustive list. These and other challenges remain.
The lack of common benchmarks and standardized language will continue to inhibit to some degree competitive dynamics around managing climate and other ESG risks. (Even) more work ahead Having covered a lot of ground today, I still haven’t reached all the places climate and ESG intersect with the SEC’s regulatory mission. Email List Consider for example, ESG funds. We recently issued an investor bulletin to help investors understand the different potential ESG strategies funds may pursue. We are working towards enhanced transparency around proxy voting. But we should consider additional steps such as, for example, an ESG-specific policies and procedures requirement.
In other areas, what steps should we take to enhance the reliability around existing climate and ESG disclosures, including potentially requiring auditor attestation of current voluntary sustainability reporting? And should the [Public Company Accounting Oversight Board] establish better standards or guidance for how auditors currently address companies’ climate and ESG-related financial statement disclosures? How also do we encourage enhanced transparency by credit rating agencies regarding how they consider ESG factors? This is by no means an exhaustive list. These and other challenges remain.