As the SEC has become more vocal in its expectations for environmental, social, and government (ESG) disclosure, serious questions remain about how ESG matters will be investigated and what enforcement measures might look like. Indicators suggest that the SEC will establish formal regulations regarding ESG disclosure, and the SEC has simultaneously suggested that it plans to ramp up enforcement across the board where it already has the authority to do so. But, without clear SEC guidance, companies and the marketplace are left to their own devices to determine how ESG matters might be investigated by the SEC and how aggressive the SEC will be in bringing enforcement actions related to ESG disclosures.
Issuers looking for guidance may want to consider looking at the SEC’s recent history of adopting cybersecurity and data privacy disclosure rules and attendant enforcement matters.
‘Enforcement 40’ for 2020
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