REP. JUAN VARGAS INTRODUCES “ESG DISCLOSURE SIMPLIFICATION ACT OF 2019”
Washington, D.C. (September 13, 2019) — Today, Representative Juan Vargas (CA-51) introduced the ESG Disclosure Simplification Act of 2019. The legislation will require public companies to disclose certain environmental, social, and governance (ESG) matters in annual filings with the Security and Exchange Commission (SEC). It will also require public companies to disclose a description of the company’s views on the link between ESG metrics and long-term business performance annually in their proxy statements.
“Investors have increasingly demanded more, and better, disclosure of ESG information from public companies,” said Rep. Vargas. “Access to better ESG disclosures allows investors to direct capital toward more sustainable companies, ultimately encouraging companies to reduce their carbon footprints and address important issues like climate change, diversity, and labor rights.”
ESG matters generally include issues relating to environmental sustainability, such as climate change; social issues, such as human rights and labor practices; and governance issues, such as gender, racial, and ethnic diversity at both executive and board levels.
The act will also create a Sustainable Finance Advisory Committee that would make recommendations on which ESG metrics public companies should be required to disclose. In addition, the committee will recommend policy changes that would encourage the flow of capital toward sustainable finance.
Vargas represents California’s 51st Congressional District which includes the southern portion of San Diego County, all Imperial County, and California’s entire U.S.-Mexico border. Vargas was first elected to the U.S. House of Representatives in 2012 and is currently serving his fourth term in Congress. He serves on the House Financial Services Committee.
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