Two professors of business law petitioned the SEC to require public companies to disclose environmental, social and governance ("ESG") information.
In their petition, Cynthia A. Williams from York University and Jill E. Fisch from the University of Pennsylvania Law School set out six arguments to support the petition:
- The SEC has clear statutory authority to require the disclosure of ESG information, and doing so will promote market efficiency and protect American public companies, as well as U.S. capital markets;
- ESG information is material to many investors;
- Public companies have trouble supplying information to investors with relevant and reliable ESG information;
- Public companies' voluntary ESG disclosure in required SEC filings is incomplete, inconsistent and insufficient;
- Commission rulemaking will reduce the current burden on public companies in making determinations on the ESG information it should be disclosing; and
- Petitioners and stakeholders are increasingly seeking ESG information.
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