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In late 2020, rumor had it that the Securities and Exchange
Commission (SEC) under the Biden Administration would likely move
to encourage or require more robust disclosure of
environmental-social-governance (ESG) and climate-related risks.
1
Therefore, it came as no surprise when the Acting Chair of the
Securities and Exchange Commission (SEC), Allison Herren Lee,
released a statement on February 24, 2021, directing the SEC's
Division of Corporate Finance to focus on climate-related
disclosure in public company filings.
2 Although the statement did not
apply to the municipal bond market, we have observed that the