At the recent 2023 Garrett Securities Law Institute Conference SEC panelists, including Erik Gerding, Director of the Division of Corporation Finance, reinforced how important it is for companies to assess emerging risks for materiality—particularly those risks stemming from Environmental, Social and Governance (ESG) issues and cybersecurity issues—and to ensure that those risks are appropriately disclosed to investors.

The SEC panelists further cautioned that disclosures related to emerging risks should not be generic disclosures based on industry-wide trends or risks, but instead should focus on the particular ESG or cybersecurity risk faced by the disclosing company. The SEC reiterated that disclosures regarding emerging risks must be specific enough for investors to appreciate the risks that the company is actually facing. Continue Reading Disclosing Emerging Risks Top of Mind for the SEC

On November 28, 2022, the Council of the European Union (EU) gave final approval to implement the EU Corporate Sustainability Reporting Directive (CSRD), ushering in a new, expanded environmental, social, and corporate governance (ESG) disclosure regime for many companies with a connection to Europe. In 2025, the CSRD will require many companies to file reports disclosing certain information for the 2024 fiscal year. Companies should review the CSRD disclosure requirements now to understand the scope of their obligations.  Continue Reading The ESG Disclosure Wave: Final Approval for the EU’s Corporate Sustainability Reporting Directive