July 15, 2021
TechCrunch: What the growing federal focus on ESG means for private markets
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2021-07-14 00:00:00, Anthony Cimino, TechCrunch
Content Categorization
/Business & Industrial
/Finance
Word Count:
552
Words/Sentence:
26
Reading Time:
5.52 min
Reading Quality:
Advanced
Readability:
16th or higher
This renewed federal focus on ESG issues will bolster the SEC's effort to create disclosure practices for public companies and mutual funds.
But we may begin to see private investors, funds and companies adapting to get ahead of ESG regulation and position themselves to effectively operate in a new – albeit adjacent – regulatory environment.
Our rules have to change along with them."
The federal government is moving to increase regulation around ESG disclosure requirements with the goals of establishing greater transparency and metrics for public companies. The federal government is moving to increase regulation around ESG disclosure requirements with the goals of establishing greater transparency and metrics for public companies.
Regardless of whether these federal policies around ESG come to pass, they reflect a momentum that will almost certainly impact private markets:Firms that want to go public – whether via SPAC, direct listing or traditional IPO – may have to seriously consider board diversity or environmental reporting in conjunction with – or well in advance of – their debuts.
Since his confirmation as the chair of the U.S. Securities and Exchange Commission in April, Gary Gensler has made reforming ESG disclosures concerning climate change risk and human capital a top priority.
Keywords
joe biden, policy, private equity, ESG, Federal government, tc, government, Congress, u.s. securities and exchange commission, Joe Biden, venture capital, Environmentalism, U.S. Securities and Exchange Commission, esg, federal government, opinion, column, greentech, environmentalism, congress, senate
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