SEC Commissioner Roisman's thoughtful and engaging Keynote Speech on ESG disclosure today at the Society's virtual National Conference reflected views very much on par with Chair Clayton's as to: (i) the questionable logic and utility of lumping "E," "S," and "G" together; (ii) the subjectivity associated with each of these terms and the fact that perceptions of what is important evolve over time; (iii) the "values" vs. "value" conundrum; and (iv) the fact that our materiality and principles-based disclosure scheme accommodates public company disclosure of all types of information, including "E," "S," and "G" information, and carries disclosure liability risks. While not sold on the notion of prescriptive ESG requirements for public companies in light of these (as well as other) concerns, Commissioner Roisman sees a need for more ESG disclosure from asset managers to ensure retail investors are not misled about their investments or inadvertently subverting potential financial returns to environmental and social goals based on asset managers' personal preferences or other objectives.
See these prior Society reports: "ESG Disclosure: SEC Chair Clayton Speaks!" | "Long-Termism Initiative: SEC Chair Clayton on Disclosure | "SEC Asset Management Advisory Committee Updates on ESG Work" | "SEC IAC Recommends ESG Disclosure Mandate" | "CII Urges SEC to Require ESG Funds to Explain Meaning of ESG" | "ESG: Values or Value?" | "ESG Disclosure Risk Mitigation" | "Voluntary ESG Disclosure: Risk Mitigation" | "SEC Seeks Comment on ESG & Other Fund Naming Regulatory Scheme" | "Financial Advisors: Sustainable Investing" | "Institutional Asset Owners: Sustainable Investing," and additional information and resources on our Sustainability/ESG page.