Neuberger Berman SRI Team supports SEC to require mandatory sustainability disclosure

In July 2016, the NB SRI Team provided comments to the Securities and Exchange Commission’s (SEC) request for public comments on updating business and financial disclosure.

The SEC concept release provides investors with a unique opportunity to engage the SEC on incorporating a mandatory sustainability reporting framework under Regulation S-K, which governs disclosures such as annual filings and registration statements.

Our letter supports the SEC’s effort to require key environmental, social and governance (ESG) metrics as part of required disclosure for public companies. Eighty One Percent (81%) of the S&P 500 Index Companies Published Corporate Sustainability Reports in 2015 highlighting shareholder demand and the increasing awareness that sustainability issues can have an impact on the bottom line. While this is a growing trend, the SEC’s concept release aims to further address the lack of comprehensive and comparable ESG data in the public domain that investors can use to make more informed decisions. Our letter further outlines the various sustainability reporting frameworks which many companies utilize voluntarily, that could be considered in developing additional disclosure requirements.

NB SRI has joined investor organizations, such as US Forum of Sustainable and Responsible Investment (US SIF) and the Interfaith Center for Corporate Responsibility (ICCR), in this latest effort to support mandatory sustainability disclosure. We have been long term members of US SIF, ICCR, CDP and signatories to the Principles for Responsible Investment (PRI) and have long been proponents of greater standardized disclosure on key ESG issues.

i Source: Governance & Accountability Institute Inc.

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