Trader works on the floor of the New York Stock Exchange (NYSE) on September 24, 2021 in Manhattan, New York City, USA. Reuters / Andrew Kelly
September 24, 2021
(Reuters) – More than half of the S&P 500 companies use the Common Standards in Value Reporting Foundation to report on topics such as carbon emissions and energy management. Foundation officials said.
“The market is already gaining momentum in the direction the SEC (US Securities and Exchange Commission) is headed,” Neil Stewart, director of Corporate Outreach, a global non-profit organization, said in an interview. ..
As of August 31, 324 S&P 500 companies are using the Foundation standards, up from 201 at the end of 2020, according to groups backed by major asset managers such as BlackRock and State Street.
This guidance explains how companies in different sectors should disclose environmental, social and corporate governance (ESG) issues.
According to the Foundation, the standard is now being used in indices outside the United States. According to a spokesperson for the initiative, there is also increasing use of another ESG initiative, the Global Reporting Initiative, which has at least 10,000 users worldwide.
This year’s SEC asked for public comments on how to instruct companies to report similar content on climate impacts and other areas. Officials did not immediately comment on the status of the review on Friday.
In a “sample letter” on its website, the SEC describes the types of questions it currently asks companies.
It requires companies to explain questions about litigation risks related to climate change and why the statements contained in the company’s voluntary social responsibility report differ from those reported in the SEC filings. is included.
“The point for me is that companies should see this as an opportunity to reevaluate their decisions of importance in climate issues,” said Matthew Flanker, an attorney for Covington.
(Reporting by Ross Kerber in Boston, edited by Sonya Hepinstall)
The Foundation states that most S&P 500s employ permanent accounting standards.
Source The Link Foundation states that most S&P 500s employ permanent accounting standards.