Political Spending Should Be Part of ESG Regime, SEC’s Lee Says

Corporate political spending is “inextricably linked” to environmental, social, and governance issues and deserves attention from lawmakers and regulators, Acting SEC Chair Allison Lee said.

Investors are increasingly calling on companies to make political spending disclosures, but the Securities and Exchange Commission can’t mandate disclosures without authorization from Congress, Lee said in a speech Monday to the Center for American Progress.

The Democratic commissioner’s remarks came after some companies altered their political spending practices following last year’s racial justice protests and the Capitol riot in January. Investors can’t properly assess whether companies upheld their pledges in areas such as social ...