According to White & Case based on its review of 2018 and 2019 Form 10-Ks and proxy statements, nearly all of the 50 largest Fortune 100 companies increased their E&S disclosure year-over-year, with the most significant increases observed in these seven categories:
The report summarizes the most prevalent disclosure topics and examples within each of the seven categories - with HCM, corporate culture, and social impact & community disclosures more likely to be included in proxy statements, and Form 10-Ks more likely to reflect supply chain management, environmental, and corporate culture disclosures. Overall, disclosures tended to be qualitative rather than quantitative.
Among other key takeaways, the firm advises companies to assess ESG information for materiality and avoid (or at least carefully consider with an understanding of the risks involved) inclusion of non-material disclosure in SEC filings.
See "Legal Risks and ESG Disclosures: What Corporate Secretaries Should Know" (Society/Gibson Dunn & Crutcher), and additional information & resources on our ESG page, and stay tuned for more disclosure tips in this week's Society Alert!