VARGAS’ ESG DISCLOSURE SIMPLIFICATION ACT PASSES THE FINANCIAL SERVICE COMMITTEE
Washington, D.C. (April 22, 2021) – Representative Juan Vargas' (CA-51) secured the passage of his bill, the Environmental, Social, and Governance (ESG) Disclosure Simplification Act, in the U.S. House of Representatives Financial Services Committee. The ESG Disclosure Simplification Act will require public companies to disclose certain environmental, social, and governance matters in annual filings with the Securities and Exchange Commission (SEC).
The ESG Disclosure Simplification Act 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.
“I am glad to see that my bill, the ESG Disclosure Simplification Act, was approved in the House Financial Services Committee. My bill allows a company’s commitment to sustainability to be easily compared and evaluated by investors. This will help with mitigating reputational risk and with evaluating a company’s financial performance,” said Rep. Vargas.
Representatives Juan Vargas (CA-51) and Jesus “Chuy” Garcia (IL-04) introduced the ESG Disclosure Simplification Act in February 2021. The bill was originally introduced in the 116th Congress and passed out of the House of Representatives Financial Services Committee in 2019.
“We must have a standard definition of materiality for both investors and companies that also includes ESG matters. Investors have increasingly been demanding public companies to disclose ESG information. As a solution, my bill will require public companies to disclose certain ESG matters in annual filings with the Security and Exchange Commission (SEC),” said Rep. Vargas. “I’m optimistic that my bill will encourage corporate and social responsibility.”
Vargas represents California’s 51st Congressional District which includes the southern portion of San Diego County, all of 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 fifth term in Congress. He serves on the House Financial Services Committee and House Foreign Affairs Committee.