Knowledge

ESG reporting in North America

April 13, 2023

Sector: ESG

Experts in our ESG committee comment on the progress of ESG in North America, exploring the implications of new legislation and how it is changing doing business in the region.

ESG reporting in North America and Canada

The ESG regulatory environment in the USA and Canada is evolving rapidly, with both countries taking steps to increase transparency and accountability for ESG performance. In the USA, the Securities and Exchange Commission (SEC) has proposed new rules that would require public companies to disclose information about their ESG risks and opportunities. The rules are still under development, but they have the potential to significantly impact the way that ESG is managed by companies in the USA.

In Canada, the Canadian Securities Administrators (CSA) have also taken steps to increase ESG transparency. In 2021, the CSA published a guidance document on ESG disclosure for investment funds. The guidance document provides information on how investment funds should disclose their ESG risks and opportunities, and it is intended to help investors make informed decisions about their investments.

Both the SEC and CSA are taking a proactive approach to ESG regulation, and their efforts are likely to have a significant impact on the ESG landscape in the USA and Canada. The new rules and guidance documents are designed to increase transparency and accountability for ESG performance, and they will likely lead to more rigorous ESG reporting by companies. This will make it easier for investors to compare ESG performance across different companies, and it will help to ensure that companies are taking ESG seriously.

In addition to the SEC and CSA, there are a number of other government agencies that are taking an interest in ESG. For example, the US Department of Labor has issued guidance on how ESG factors should be considered in retirement plan investments. And the US Environmental Protection Agency has issued new rules that require companies to disclose information about their greenhouse gas emissions. The ESG regulatory environment in the USA and Canada is complex and evolving. But it is clear that both governments are taking ESG seriously, and they are taking steps to increase transparency and accountability for ESG performance. This is good news for investors, who will have more information to help them make informed decisions about their investments. And it is good news for companies, who will be under more pressure to take ESG seriously and to improve their ESG performance.