A new report led by software service company Diligent, which surveyed more than 800 corporate board members across the United States, United Kingdom, and European Union, shows that almost all (96%) directors expect a “continued or stronger” focus on ESG over the next five years. The new data also shows that 94% of directors have already integrated ESG into either their compensation plans or their strategic goals, suggesting a growing alignment between boards and the c-suite.
As reported in Fortune, company leaders are not only preparing for federal guidance on climate risk disclosure reporting, they are looking forward to formal standards to help make the process more “harmonized.”
While the new report from Diligent is positive news, there is a deep bench of research that shows Americans and investors have similar outlooks on climate risk disclosures and the U.S. Securities and Exchange Commission’s (SEC) rule.
- Two-thirds of voters (80% of Democrats, 65% of Independents, and 55% of Republicans) support the proposed SEC rule, and a majority of Americans support responsible investing.
- More than half of voters, including 52% of Republicans and 63% of Independents, oppose Congress putting limits on these kinds of disclosures.
- A majority of voters agree that financial managers should be allowed to consider environmental factors when making investing decisions.
- Investors have repeatedly demanded reliable risk-related disclosures from companies. Shortly after the SEC released its initial proposal, nearly 200 investment firms, nonprofits, and state Treasurers sent a joint letter reaffirming support for the rule and outlining imperatives for the standard transparency requirements.
- Just a few days after the SEC released the proposed rule, global investment firm Franklin Templeton, which oversees more than $1.5 trillion in assets under management, issued its own statement of support. The firm noted that “to direct private capital to address the complex and daunting challenges of the energy transition, climate risk disclosure needs to be standardised, mandatory and regulated.”
Learn more about climate risk disclosures and the SEC’s rule here.
You can read the article from Fortune here.
