S. ESG Disclosures: International and U.S. Requirements and Perspectives

Investment strategies that take account of ESG (environmental, social and governance) considerations depend crucially on the disclosures made by market participants, especially companies and investment managers. As ESG investing has become more widespread, it has been accompanied by rapid growth in corporate disclosures and claims about ESG-related practices, metrics and other issues. The seminar will focus on a central ESG issue – climate change – and on the information companies provide about their climate-related risks and opportunities and their impact on the climate. Climate change is an increasingly urgent priority, and there is growing controversy over the practice and regulation of corporate disclosures about climate matters. The seminar will explore the March 2022 proposal by the U.S. Securities and Exchange Commission (SEC) to require public companies to provide detailed, specific disclosures about matters relating to climate. The adoption of final rules is currently anticipated for Fall 2023, and if that schedule holds, we will study the final rules promptly when they emerge. The seminar will also explore the climate-related aspects of the far-reaching regulatory project under way in the European Union (EU) on sustainable finance, and the climate disclosure standards adopted in June 2023 by the International Sustainability Standards Board (ISSB).