ESG reporting witnesses increase in global variance
US Securities and Exchange Commission (SEC) last week stayed the first-of-its-kind climate disclosure rules pending judicial review and amid a political backlash. The rules, adopted a month earlier, had taken two years to pass a pared down version and required public companies to disclose extensive climate change-related information in their regulatory filings.
This development comes three months after China unveiled its ESG rules requiring companies to publish sustainability reports by 2026. In a significant move, the Supreme Court of India in a ruling released last week expanded the scope of Articles 14 and 21 to include the 'right against the adverse effects of climate change'.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Chief Technology OfficerVisitUniversity of Western AustraliaUWA Global MBAVisitIndian School of BusinessISB Chief Digital OfficerVisitFrom having seen a quick adoption of ESG — the umbrella term pertaining to environmental, social and governance standards — the US today faces ambivalence about its implementation due to the flak it has received from politicians, academicians and business leaders. For instance, American entrepreneur and politician Vivek Ramaswamy in his 2023 book 'Capitalist Punishment' described how leading Wall Street firms forced US companies to adopt ESG mandates while supporting human rights atrocities in China or shifting oil production to places like Russia. Companies in the US now tread a precarious path of staying committed to sustainability goals yet not found to be associated with 'ESG' that will attract criticism. This has led to the emergence of a kind of 'green hushing'.
