The U.S. SEC and the impact of standardised ESG reporting
On 10 March 2021 the EU Regulation 2019/2088 on sustainability-related disclosures in the financial services sector entered into force in the EU and the EEA. In conjunction with the Taxonomy Regulation (EU 2020/852), this new disclosure regulation urges financial market participants and financial advisors to update their disclosed product information on sustainability issues and sets new standards for dealing with sustainability risks and negative sustainability impacts.
While the U.S. Securities and Exchange Commission (SEC) is poised to act on similar ESG compliance, financial market participants and financial advisors in the U.S. are at an impasse: There’s no clear direction on ESG reporting and no agreement about what ESG compliance even means. Answers to the myriad questions around ESG reporting remain elusive. Henry Kronk has compiled the first unofficial statements from the SEC in a new post at Corporate Compliance Insights.