CEOs are calling for more regulation—of ESG standards

Source: Fortune

“Long-term success for any organization is increasingly tied to the company’s ability to prioritize environmental, social and governance (ESG) metrics.”

— The FORTUNE CFO Collaborative

ESG reporting will soon be mandatory across the EU and UK, with new regulations going into effect in the near future.At the Fortune CFO Collaborative’s meeting on August 11, there was clear support for SEC [Securities and Exchange Commission] action to require companies to disclose both sustainability and diversity metrics.

Big US firms are requesting the government to regulate ESG standards in the American market. The aim is for regulations to provide more consistency, clarity and certainty when it comes to sustainability and diversity reporting.

For years now investors have been calling on companies to adopt a standardised framework for non-financial reporting. If the US does not adopt Europes upcoming regulations regarding ESG reporting, it could be harder to access American capital markets.