While the SEC’s proposed rules are still developing, many public companies are voluntarily including environmental, social, and governance (ESG) disclosure in SEC filings, corporate websites, and sustainability reports. The level of voluntary ESG disclosure has grown exponentially over the past few years, primarily driven by investor demand and interest from other stakeholders. This evolution has resulted in some companies selecting frameworks to disclose quantifiable ESG metrics. Companies are also feeling pressure to increase their voluntary ESG disclosure as their peers increase such disclosure to avoid being labeled an ESG laggard by investors or rating organizations.
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