Sending Office: Honorable Juan Vargas
Be an Original Cosponsor of the ESG Disclosure Simplification Act of 2019 (DEADLINE: Noon, Thursday, September 12th)
Require issuers to include environmental, social and governance (ESG) matters when disclosing information material to investors’ decisions
Endorsed by: Teachers Insurance and Annuity Association of America (TIAA)
All public companies are required to file periodic reports with the Securities and Exchange Commission (SEC), to provide investors with the information needed to make sound investments. These reports include metrics regarding the company’s business practices
and finances, as specified by the SEC. However, the SEC currently has no rule requiring companies to disclose information related to environmental, social, and governance (ESG) matters.
ESG disclosures would include assessment of environmental sustainability and receptiveness to social issues such as human rights and labor practices, and composition of a company’s governance, such as gender, racial, and ethnic diversity at both the executive
and board levels. There is growing evidence that such disclosures are material to investors. In fact, in recent years, investors have increasingly been demanding more — and better — disclosure of ESG information from public companies.
Despite this growing desire for ESG metrics the SEC has not implemented a rule requiring public companies to disclose such metrics. That is why I plan to introduce the ESG Disclosure Simplification Act. Among other things, this bill requires public companies
to disclose certain ESG metrics and directs the SEC to establish a rule delineating which metrics must be disclosed. The legislation also creates a Sustainable Finance Advisory Committee within the SEC, which would propose recommendations to the SEC on which
ESG metrics public companies should be required to disclose, as well as periodically recommend policy changes that would encourage the flow of capital toward sustainable finance.
As lawmakers, we must ensure investors have the necessary information to make sound investments. ESG disclosures will allow more investors to target socially and environmentally cognizant, and efficient companies with a strong future. Our economy benefits
when such companies do well. I hope you will join me in ensuring investors are better able to make the decisions that will support the well-being of our financial system.
If you have any question or if you would like to be an original cosponsor of this legislation, please contact Scott Hinkle on my staff at
Scott.Hinkle@mail.house.gov or Hannah Ceja at
Hannah.Ceja@mail.house.gov by noon Thursday, September 12th.
Member of Congress
e-Dear Colleague version 2.0