ESG Roundup

As we approach 2024, ESG initiatives continue to be at the forefront of U.S. and global policy discussions and are reaching into more areas of the economy.??

• The U.S. SEC has proposed climate-related reporting for public companies that could have sweeping impacts on the real estate sector, which comprises a significant portion of most people’s wealth, particularly in the U.S.???
• Following meetings that took place in July and November, U.S. and Chinese climate envoys reaffirmed their commitment to addressing climate change through implementation of the Paris Accords and pointed toward the importance of COP 28 in responding meaningfully to the climate crisis during this critical decade and beyond.?
• The recent UAW strike highlights the challenges companies face trying to achieve ESG commitments while mitigating impacts on stakeholders, particularly the workforce.?

The global focus on ESG combined with the polarization around the issue within the U.S. make it likely ESG tensions will continue to escalate as we head further into the 2024 elections. Read below to learn more.?

"Companies May Soon Be Required to Report ESG Efforts” - National Association of Realtors?

The U.S. Securities and Exchange Commission has proposed a new rule requiring publicly traded companies to provide detailed reporting on climate-related risks, emissions, and net-zero transition plans. If adopted, the proposed rule could have a ripple effect on real estate professionals, landlords, property owners, corporate tenants, lenders, and investors, requiring them to disclose their real estate holdings. Proactively establishing data collection processes and audits could help prepare companies for the increased ESG reporting required by the potential rule change.?

"Sunnylands Statement on Enhancing Cooperation to Address the Climate Crisis” - US Department of State?

Recently, U.S. Special Presidential Envoy for Climate, John Kerry, held meetings with China Special Envoy for Climate Change, Xie Zhenhua. As a result of these meetings, both China and the United States have reaffirmed their commitments to addressing climate change. Notably, both countries are actively working on implementing policies and regulations that will have significant impacts on U.S. industries, especially the energy sector. The coming decisions and recommendations made by the task forces will not only affect companies' operations within the U.S., but also their ability to advance their ESG initiatives on a global scale.?

"UAW win highlights concerns over risks for workers in clean energy transition” - Marketplace?

The recent UAW strike serves as a prominent example of the challenges companies encounter from stakeholders as they strive to progress their ESG initiatives. Although the strike has concluded, employees' concerns and aspirations persistently shape discussions while they strive to establish improved working conditions and secure their future amidst an industry-wide shift toward electric vehicle production. While companies prioritize advancements in environmental factors of ESG, this recent development serves as a reminder that they must also remain steadfast in preserving and advancing the social aspects.?

"Daily on Energy: The latest skirmish in the war over ESG” - Washington Examiner?

The Ways and Means Committee’s first-ever ESG-focused hearing earlier in November illustrated the ongoing politicization of and polarization around ESG investing in the U.S., and testimony from a “strange bedfellows” collection of witnesses indicates that the debate around ESG initiatives is creating unexpected divisions and alliances among stakeholders. Although few voters really understand what ESG investing is, these hearings indicate ESG will play a key role during the 2024 elections at both the state and federal levels. Companies should continue to pay close attention to the decisions and conversations happening among policymakers as rhetoric on both sides of the aisle becomes more pronounced and businesses can easily get caught in the middle.???