Earlier today, the U.S. Impact Investing Alliance submitted comments in support of the U.S. Securities and Exchange Commission’s (SEC) proposed rule to enhance and standardize climate-related corporate disclosures. This represents a historic moment for impact transparency, as investors have long been calling for accessibility to clear, comparable data related to environmental, social and governance (ESG) factors.
The Alliance’s comments communicate broad support for the proposal, which is squarely in line with the SEC’s mandate to protect investors, maintain fair and efficient markets and facilitate capital formation. In its comments, the Alliance offers support for specific provisions and encourages the agency to carefully consider how it can lay the groundwork for global convergence on sustainability standards and the efforts of other jurisdictions like the International Sustainability Standards Board (ISSB).
The Alliance’s comments also emphasize what more is needed from regulators. “The requirements the SEC has put forth represent a tremendous step toward instilling transparency and accountability across capital markets. However, we can’t lose sight of the broad set of intersectional issues - climate change, wealth inequality and other major threats to the U.S. economy - that are material and impact shareholder value,” said Fran Seegull, President of the U.S. Impact Investing Alliance. “Going forward, the SEC should be thinking about a comprehensive disclosure framework.”
In partnership with B Lab, the Alliance also organized and signed onto a letter on behalf of the Coalition on Inclusive Economic Growth, alongside 60 other field leaders. As the rulemaking process continues, the Alliance looks forward to continuing to engage with partners and the SEC to ensure the final rule equips investors with the decision-useful information they require.
The Alliance encourages its peers in the impact investing community to share public comments ahead of the June 17 deadline.