According to a recent survey conducted by Just Capital, we are seeing an increase in public demand for more comprehensive disclosure by corporations regarding their ESG-related policies. ESG, or Environmental, Social, and Governance is an approach to evaluating the extent that corporations go to in regard to environmental, social, and governance goals. From environmental and societal impacts, to workforce compensation and consumer privacy, many Americans are now demanding transparency from companies. A majority believe that how America’s largest companies operate affects society, as well as them individually. This leads to the question of how the US will begin to regulate the disclosure of ESG-related topics such as climate risk strategy, management and governance, and assurance standards. 

       In May, the SEC approved forming a standardized framework for reporting on climate-related risks. When this is fully implemented, we can expect more clarity, comparability, and consistency surrounding future investments. The SEC plays a critical role in addressing these ESG-related issues, and as greenwashing and misreporting become more prominent, we look to them for regulation. What we expect to see as this structure is put in place is not only a direct benefit to us but a legitimizing of ESG investing as well. 

       As always, feel free to contact us with any questions or concerns you may have. Hope this was helpful!

By: Maya Vierra, student intern and sophomore at New York University.

Jack Schniepp is a CERTIFIED FINANCIAL PLANNER™ (CFP®, ChFC®) and the owner of Cascade Financial Strategies. CFS is a registered investment advisor located in Bend, Oregon and licensed in Oregon, California, Washington, Arizona and Idaho. They specialize in socially responsible investing which integrates environmental, social, and corporate governance (ESG) criteria into portfolio construction.