[Originally published in ImpactAlpha’s ‘Policy Corner’] Public policy and regulatory action have helped accelerate and catalyze the flow of private capital for public good for decades. The historic regulatory moment we find ourselves in, marked by significant movement on landmark policies, calls for attention and action from actors across the impact investing ecosystem. Below are specific opportunities to raise your voice and help shape regulations that will impact the future of our field.
U.S. Impact Investing Alliance Applauds Banking Regulator’s Guidance on Climate-Related Risks
The U.S. Impact Investing Alliance wrote to the Federal Deposit Insurance Corporation (FDIC) today in support of their draft guidance for large banks managing climate-related financial risks.
Investors and the broader public are relying on financial institutions to account for the significant, systemic risks posed by climate change in a prudent manner.
The FDIC’s guidance helps provide clarity to banks on how to do so and is an important element of a whole-of-government approach for ensuring a future economy that is resilient and strong.
Impact Investors Support SEC’s Leadership on Climate Transparency
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.
Regulatory Progress Toward Transparency in ESG Investing
Earlier today, the U.S. Securities and Exchange Commission (SEC) proposed two sets of rules that will help shed light on the practices of investment funds and advisors that incorporate environmental, social and governance (ESG) investment factors into their strategies.
The U.S. Impact Investing Alliance is encouraged by the SEC's latest actions to help equip investors with clear, comparable and reliable information about the true nature of their investments and improve overall transparency and accountability across the capital markets.
The Alliance looks forward to reviewing the proposals in depth and providing comments regarding specific provisions and potential areas for strengthening the final rule.
Department of Labor Seeks to Protect Retirement Savers from Climate-Related Financial Risks
The U.S. Impact Investing Alliance was pleased to respond today to a Request for Information on how the Department of Labor can protect retirement savers from climate-related financial risks. Alongside specific recommendations for further action and research by the Department, the Alliance is calling for a whole-of-government approach to combatting the significant, systemic risks climate change poses to the economy. Read the Alliance’s full comments here.
Banking Regulators Set out to Strengthen Foundational Community Investing Policy
Earlier today, the Federal Deposit Insurance Corporation (FDIC), Federal Reserve and the Office of the Comptroller of the Currency (OCC) proposed significant reforms to the Community Reinvestment Act (CRA), an anti-redlining banking policy with roots tracing back to the civil rights movement. While the CRA has been catalytic, the racial wealth gap and access to capital divides persist, and the U.S. Impact Investing Alliance is supportive of the regulators’ latest efforts to modernize and strengthen the policy’s underlying framework.
Policy Corner: Expanding the ‘S’ in ESG to account for the full scope of corporate impact on workers and communities
[Originally published in ImpactAlpha’s ‘Policy Corner’] From the Great Resignation to the historic worker-organized unionization of an Amazon warehouse in Staten Island, N.Y., worker empowerment represents an increasingly important lever for corporate accountability. The bottom-up grassroots energy, combined with top-down government action, creates a unique opportunity to advance the conversation around the role of corporations in society and the ‘S’ in ESG.
Impact Transparency on Climate Risks Is Good for Business, Investors and the Economy as a Whole
A group of 60 impact-oriented business and investor organizations raises our collective and enthusiastic support for the SEC’s proposal to require U.S.-listed companies to disclose their exposure to climate risks, following longstanding calls from investors and other stakeholders. See our full comments to the SEC and keep reading to hear from the letter’s signatories directly.
Policy Corner: On ESG disclosure, companies should listen to the opinion of the American public
[Originally published in ImpactAlpha’s ‘Policy Corner’] The risk that climate change poses to business operations and investment portfolios and companies’ role in contributing to global temperature increases are now undeniable. Similarly, since the beginning of the pandemic, it has become clear how critical a strong human capital strategy is to business success.
U.S. Impact Investing Alliance Celebrates Historic Step Forward on Corporate Climate Disclosure and Impact Transparency
Today marks a major milestone for the impact investing community and its longstanding efforts to manifest a more equitable, inclusive and sustainable economy. The U.S. Impact Investing Alliance applauds the SEC for their leadership in advancing new climate reporting requirements for U.S.-listed companies, which represents one of the boldest steps a U.S. regulator has taken toward accounting for the risks of climate change to our economy in a transparent and meaningful way.
Policy Corner: From wage earners to asset owners: A policy agenda for employee ownership
[Originally published in ImpactAlpha’s ‘Policy Corner’] In an increasingly divided economy, how can impact investors transform the American workforce from wage earners into asset owners? Impact investors looking for strategies to build a more inclusive and dynamic American capitalism should support public policies designed to accelerate the investment potential of employee ownership.
U.S. Impact Investing Alliance Statement on Russia’s Invasion of Ukraine
The U.S. Impact Investing Alliance stands in solidarity with the people of Ukraine and those calling for an end to Russia’s unprovoked invasion. We are heartened by the rapid response of individuals, governments, NGOs, businesses and investors around the world to hold Russia accountable and to provide aid to those who have been threatened or displaced. Much more will be required in the months and years to come as a humanitarian crisis unfolds in Europe and around the world.
Policy Corner: Agents of Impact eye corporate disclosure rules on climate and human capital
[Originally published in ImpactAlpha’s ‘Policy Corner’] Healthy and functioning markets depend on transparency and accountability. Impact investors have long understood that this extends to a need for information on companies' behavior and impact on the world around them. Now, amid the growing urgency of the climate crisis and the cost of inequality, regulators are taking notice too.
Policy Corner: Progress on a dozen policies to mobilize private capital for public good
[Originally published in ImpactAlpha’s ‘Policy Corner’] There is no shortage of challenges facing leaders in Washington. The coming midterm elections will increasingly dominate the headlines. But impact investors must continue to push for policies that will catalyze private capital to improve the lives of Americans and help address our ongoing social, economic and environmental crises. The principles of impact investing have long captured bipartisan interest.
U.S. Impact Investing Alliance Applauds SEC for Protecting Investors’ Proxy Voting Rights
Earlier today, the U.S. Impact Investing Alliance submitted comments to the Securities and Exchange Commission (SEC) in support of their proposed amendments to the rules governing proxy voting advice for shareholders.
The proposal would rescind a provision finalized in 2020 that undermined the independence of the proxy advisory process. In doing so, the SEC is rightly course correcting and ensuring that investors have access to timely, accurate and unbiased advice, a core element of their shareholder engagement rights.
Policy Corner: How business, investors and government are working together to drive equitable economic growth
[Originally published in ImpactAlpha’s ‘Policy Corner’] It’s not every day that leaders from government, business and finance come together to advance a shared vision of how to make economic growth more equitable and inclusive. But a group of 60 impact-oriented businesses and investors, including the U.S. Impact Investing Alliance and B Lab, are answering the call with the launch of a coalition committed to working side-by-side with government to amplify and accelerate the equity agenda.
U.S. Impact Investing Alliance Applauds Critical Step Toward an Improved CRA
The U.S. Impact Investing Alliance applauds the Office of the Comptroller of the Currency (OCC) for its issuance of a final rule yesterday rescinding the 2020 Community Reinvestment Act (CRA) rule from the previous administration. Alongside our peers, the Alliance has submitted several comments to the Federal Reserve, Federal Deposit Insurance Corporation (FDIC) and the OCC expressing the need for the agencies to work collaboratively to uphold the CRA’s core purpose and to better address racial disparities in lending.
Coalition on Inclusive Economic Growth Members Write in Support of Department of Labor Affirmation of ESG Materiality Under ERISA
The U.S. Impact Investing Alliance, along with over 20 other members of the Coalition on Inclusive Economic Growth, comprised of businesses, investors and nonprofits, submitted a letter in support of the Department of Labor’s (DOL) proposed rules clarifying retirement and pension plan fiduciaries’ use of environmental, social and governance (ESG) factors under the Employee Retirement Income Security Act (ERISA).
Policy Corner: Congress must keep path clear for SEC to require corporate political spending disclosure
[Originally published in ImpactAlpha’s ‘Policy Corner’] In these challenging times, we must celebrate the wins where we can. After years of conservative obstruction in Congress, the Senate finally removed harmful language from the federal budget bill stopping the Securities and Exchange Commission from finalizing a rule requiring corporations to disclose their political activity. Now, Democrats in the House and Senate must fight to fund the government before the money runs out on Dec. 3, and keep this harmful language from returning to any final budget deal. Call your members of Congress today and tell them to pass a clean budget, free of this pernicious provision.
Group of 30 Organizations Committed to Inclusive Economic Growth Write in Support of Strengthened CRA
The U.S. Impact Investing Alliance, along with 29 organizations, representing businesses, investors, community lenders and advocates, and aligned around the principles of inclusive economic growth, submitted a letter in support of the Office of the Comptroller of the Currency’s (OCC) proposal to rescind June 2020 changes to Community Reinvestment Act (CRA) regulations that would – if fully implemented – significantly weaken the policy. The signatories applauded the OCC’s decision to pursue a cohesive set of reforms that will modernize and strengthen the CRA alongside its peer regulating agencies - the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve.