Pending ESG Bills in US Congress

Several draft bills before the US Congress indicate that the increasing political pressure to improve environmental, social, and governance (ESG) disclosures could lead to a significant change with regard to federal regulation.

To help you navigate this evolving regulatory environment, the ECOFACT Policy Outlook team has prepared an overview of selected pending ESG bills before US Congress. Three areas of focus can be identified: ESG disclosure, diversity, and shareholder engagement.

While some proposals have been pending for a while, we are now seeing these draft bills progress through the first branch of the government. The political momentum surfaced with the first congressional hearing on ESG issues in the USA in July. Since then, the House Committee on Financial Services voted to advance the Climate Risk Disclosure Act of 2019 and voted to pass the ESG Disclosure Simplification Act of 2019. Both bills would require public companies to reveal more information on ESG issues, including climate change risks.

It remains to be seen whether the bills will succeed – there is expected opposition in the Senate. To monitor developments and for a complete overview on US initiatives, please check the Policy Outlook tool.