As investors routinely push public companies to address ESG in terms of long-term shareholder value, a determined group of institutional investors and ESG advocates think the time is right for the Securities and Exchange Commission to mandate a uniform approach to how companies disclose and manage potential risks.
On Oct. 2, a sizable group of institutional investors and asset managers, state treasurers and ESG advocates petitioned the SEC to mandate standardized disclosure of environmental, social and governance information by publicly traded companies. As the effort to get that information company-by-company becomes increasingly time-consuming for all parties, investors and advocates say that standardized data will provide a better way to review companies' risk management and long-term performance while saving everyone time and trouble.
Signers of the petition include:
- The $361.6 billion California Public Employees' Retirement System, Sacramento.
- New York state Comptroller Thomas P. DiNapoli.
- Illinois Treasurer Michael W. Frerichs.
- Connecticut Treasurer Denise L. Nappier.
- Oregon Treasurer Tobias Read.
- The $2.6 billion Seattle City Employees' Retirement System.
Mr. DiNapoli is the sole trustee of the $209.2 billion New York State Common Retirement Fund, Albany, and Ms. Nappier is principal fiduciary of the $34 billion Connecticut Retirement Plans & Trust Funds, Hartford.