The Evolution of SEC Disclosure: The Materiality of ESG Information and its Use by Investors

ESG integration into investment decision-making has now hit an inflection point, with signatories of the Principles for Responsible Investment initiative reaching a combined AUM total of $59 trillion.

With the dramatic rise in investor interest in incorporating ESG factors into investment decision-making, companies are sitting up and taking notice. And yet, analysts often lack access to comparable, standardized information on the sustainability factors that impact value. While there has been a notable increase in the volume of sustainability reporting over the past several years, there is a strong push among investors for companies to disclose material ESG information in their SEC filings.