The U.S. Impact Investing Alliance applauds the SEC’s approval of Nasdaq’s board diversity and disclosure requirements for the companies listed on its exchange. This latest development represents encouraging leadership by Nasdaq and the SEC to improve diversity in corporate America and transparency in the capital markets.

The Alliance voiced its support for the proposal to the SEC earlier this year, emphasizing the materiality of factors such as diversity in leadership to investors. In its comments, the Alliance also encouraged private and public sector leaders to consider revisiting the definition of “diversity” to include individuals with disabilities, an often underrepresented community in the workforce.

As a next step, the Alliance urges the SEC to pursue mandated ESG disclosure for public and large private companies, including issues related to diversity and the workforce, to build on the momentum of this latest development.