On June 16, 2021, the U.S. House of Representatives voted (215-214) to pass the ESG [Environmental, Social and Governance] Disclosure Simplification Act of 2021 (H. R. 1187) (the “Bill”).[1] This legislation would build on the Biden Administration’s push for major corporations to be more transparent in disclosing economic and social risks to investors, including climate-related risks.
If signed into law, H. R. 1187 would, among other things, require the Securities and Exchange Commission (“SEC”), for the first time, to define, in regulations, “ESG metrics,” for the purpose of guiding required corporate disclosures under the Securities Exchange Act of 1934
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