On March 15, 2022, the Second Circuit rejected an appeal brought by ExxonMobil attempting to block investigations by the New York and Massachusetts Attorneys General into historical claims made by Exxon regarding climate change. These cases have a long procedural history in both state and federal courts as Exxon has employed multiple procedural vehicles to attempt to halt the investigations. Generally, both investigations relate to whether Exxon intentionally mislead investors and the public regarding its knowledge and the risks of climate change. … More
Tag Archives: ESG
2021 Marked by SEC Focus on Climate-related Disclosures
With the third quarter coming to a close and year-end reporting just around the corner, public companies should be giving careful thought to the evolving landscape for climate-related disclosures. While it did not promulgate any new rules in 2021 regarding these disclosures, the SEC has been actively commenting on climate change disclosures, and new rules are almost certainly on the way.
Since 2010, the SEC has made clear that its existing disclosure regime requires issuers to assess and,… More
Will More Money Managers Start Voting Shares Based on Climate Issues? Fidelity International Gets in the Game
In the wake of Engine No.1’s successful effort to elect more climate-friendly directors at Exxon and the increasingly aggressive action by BlackRock to take climate into account in its investment management decisions, the whole world is watching for further evidence of capitalism’s efforts to save the world from, well, capitalism.
The latest news is from Fidelity International (not to be confused with Fidelity Management and Research),… More
Congress A Step Closer to Making Corporate ESG Disclosure Mandatory
On June 16, 2021, the U.S. House of Representatives passed legislation that would impose new ESG due diligence and disclosure requirements on publicly traded companies. H.R. 1187 – the ESG Disclosure Simplification Act of 2021 – would require publicly traded companies to disclose their commitments to ensuring that environmental, social (human rights), and good governance standards (ESG) are reflected in their operations, activities, and supply chains.
The Legislation’s Impact on ESG Due Diligence and Disclosure
President Biden’s “Climate-Related Financial Risk” Executive Order Pushes Forward on the Administration’s ESG Commitments
On May 20, 2021, President Biden signed an Executive Order to address predicted financial instability in the federal government as a result of climate change. This Executive Order showcases a dramatic change in how the Biden Administration’s stance towards climate-finance and environmental, social, and governance (ESG)-based investments will differ from the previous administration.
The Executive Order, titled “Climate-Related Financial Risk” seeks to “bolster the resilience of our rural and urban communities,… More
Watch Now: ESG – What You Need to Know About the Rapidly Evolving Disclosure Landscape
As anticipated, the pace of change around the Climate and broader ESG landscape is accelerating rapidly. In this timely webinar, we discussed:
- The multiple market developments leading towards a rationalized corporate reporting system
- The role of the board and governance around the ESG agenda
- Practical steps to navigate the changing ESG landscape
Incoming SEC Chairman Likely To Push For More ESG Disclosure
In a recent post, we examined the growing clash within the SEC over whether to mandate and standardize disclosure by public companies of business impacts and risks associated with Environmental, Social, and Governance (ESG) concerns. Some at the SEC pushed for more standardized, comparable, and reliable disclosure of issuers’ exposure ESG risks. Others, including former Chairman Jay Clayton, pushed back, arguing that current disclosure rules, which already require companies to disclose material risks,… More
Mandating Standard ESG Risk Disclosures – Is The Tide Turning At The SEC?
Over the past decade, there has been an unprecedented shift in investor focus toward the analysis use of Environmental, Social and Corporate Governance (ESG) risks and impacts in investment decision-making. While the Securities & Exchange Commission has acknowledged this shift, it has to date resisted calls for the adoption of standards governing issuers’ disclosure of ESG risks.
Outgoing SEC Commissioner Jay Clayton has repeatedly offered his view that the SEC already requires companies to disclose material risks,… More