Many companies aren’t adequately integrating environmental, social and governance (ESG) issues with new SEC requirements, and that’s causing widespread SEC disclosure noncompliance, according to recent research by CSR Insight LLC.
The study, billed as the first independent, comprehensive technical study of how the SEC regime applies to ESG issues found that:
- More than a dozen SEC requirements potentially apply, for 10-K, 10-Q, 8-K, and other corporate SEC filings, including narrative disclosure and financial statement requirements, books and records requirements, and management certification requirements.
- There’s a substantial likelihood of widespread corporate noncompliance with one or more of these SEC requirements.
CSR Insight, which is an independent consultancy specializing in analysis of SEC and global financial regulation, global financial regulatory policy, ESG reporting frameworks, ESG capital market issues, and international corporate governance standards, concluded that the problem is this: (more…)