What ESG-Related Disclosures Should the SEC Mandate?

The Financial Economist Roundtable (“FER”) met in July 2021 to discuss current efforts to measure and require disclosure of firms’ ESG activities.[1]  The views of individual FER members about specific issues often differ, but the consensus was that financial regulators should be cautious in mandating disclosures.

Public comments by the current SEC commissioners suggest two opposing views: (1) increase disclosure substantially to include disclosure of environmental outcomes or (2) maintain the status quo because current rules for disclosing material risks cover environmental and social (E&S) activities.  We recommend increased disclosure, but we also recommend that the SEC not mandate … Read more