ANALYSIS: Corporate Reputation Is What Drives ESG Disclosures

There are a lot of reasons why companies are thinking about their ESG disclosures right now. Gary Gensler, chairman of the Securities and Exchange Commission, has made it clear that improving corporate ESG disclosure is an SEC priority. The 2021 United Nations Climate Change Conference (COP26) has focused world leaders’ attention on committing to ambitious emissions reduction targets, and attorneys are watching how these commitments will inevitably affect their corporate clients. And there is continued attention from activist investors on ESG-related topics.

But what is the primary driver for companies to prepare ESG disclosures? Reputation.

Bloomberg Law recently surveyed lawyers ...