SEC Acting Chair Backs Corporate ESG Disclosures, if ‘Material’

Acting SEC Chair Mark Uyeda on Thursday said environmental, social, and governance reporting is necessary for some companies, despite his opposition to broader ESG disclosure initiatives during the Biden administration.

Federal securities law has required reporting on climate change and other ESG matters for decades, if they’re “material” to a company’s shareholders, the Republican said at a Wall Street Journal summit. A company must report anything that would be deemed important to a reasonable investor under the Securities and Exchange Commission’s materiality standard.

This requirement could mean companies may have to report environmental issues as risk factors and provide other ...