On Monday, the SEC asked for public comments on a new, standardized ESG disclosure framework that would require issuers to disclose certain climate and other ESG-related risks. The comment request—which encapsulates public and private company disclosures—includes 15 questions with the goal of providing a “consistent, comparable, and reliable” framework to allow investors to use ESG considerations in their decision-making.

“It’s based on what information is important to reasonable investors,” said Acting SEC Chair Allison Herren Lee. “It’s investors who decide. And on ESG, I think they’ve been crystal clear that the information is material, and they’re not getting what they need.”

Just two days later, Lee once again signaled changes to ESG disclosures as we know them: this time in shareholder proxy statements, which explain to investors how their money is voted. Presently, SEC Form N-PX is used by companies to disclose proxy votes and procedures.

Speaking at an Investment Company Institute virtual conference, Lee criticized the current system as both “unwieldy” and “difficult to understand.” To combat these issues, she announced her staff is considering rulemaking options that would revisit existing guidance, possibly modify the Form N-PX standard, and entail a new website to track critical data for investors. Lee explained that such changes are necessitated by both the rising demand for ESG considerations and the surge in demand for fund investing amongst U.S. households.

Think this week was a busy week in the ESG world? Subscribe to Proskauer’s Corporate Defense and Disputes blog to learn what happens next week.

Photo of Erica T. Jones Erica T. Jones

Erica Jones is an associate in the firm’s Litigation Department, where her practice encompasses a range of business, regulatory, and corporate governance matters. She has worked extensively in defense of securities class actions, derivative suits, and white collar criminal matters involving investigations by…

Erica Jones is an associate in the firm’s Litigation Department, where her practice encompasses a range of business, regulatory, and corporate governance matters. She has worked extensively in defense of securities class actions, derivative suits, and white collar criminal matters involving investigations by the SEC, DOJ, and state attorneys’ offices. In addition, Erica has advised on antitrust matters involving allegations of price fixing, restraint of supply, monopolization, group boycott, bid rigging, and collusion across industries that include agriculture and health care. She is also a member of the litigation team representing the Financial Oversight and Management Board in the Commonwealth of Puerto Rico’s bankruptcy proceedings.

Erica maintains an active, diverse pro bono practice, with a focus on immigration law, compassionate release and habeas corpus, and racial justice. She is an associate trustee with the Washington Lawyers’ Committee for Civil Rights and Urban Affairs and has been recognized by the District of Columbia Courts’ Capital Pro Bono Honor Roll. Erica was also one of a few women selected to be a Protégée for Proskauer’s Women Sponsorship Program, an initiative for high performing midlevel lawyers that champions emerging leaders.

Erica strives to stay on the cutting edge of developing areas of law through her membership in Proskauer’s COVID-19 Task Force, ESG Working Group, and Private Credit Litigation Group.  Erica’s ability to advocate for her clients is further bolstered by her recent Master’s Degree in Accounting from the University of North Carolina’s Kenan-Flagler Business School with a concentration in Financial Reporting and Analysis.

Prior to joining Proskauer, Erica was an intern with the Department of Justice in the Constitutional and Specialized Tort Litigation Section. Outside of her career in the law, Erica has been featured on Fox’s So You Think You Can Dance, teaching ballroom dance to students at Lighthouse for the Blind.

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