By a razor thin vote of 215 to 214, the House of Representatives passed the ESG Disclosure Simplification Act of 2021.
The Act would require public companies to disclose in any proxy or consent solicitation material for an annual meeting of the shareholders:
The bill mandates the SEC:
According to the legislation, it is the sense of Congress that ESG metrics are de facto material for the purposes of disclosures under the Securities Exchange Act of 1934 and the Securities Act of 1933.
The legislation also requires the SEC to establish a permanent advisory committee to be called the “Sustainable Finance Advisory Committee.” Among other things, the Committee would be required to:
The bill defines “sustainable finance” as the provision of finance with respect to investments taking into account environmental, social, and governance considerations.