GRI Chief Executive Tim Mohin recently testified before the U.S. House Committee on Financial Services, which is considering new corporate reporting requirements for environmental, social, and governance (ESG) information.
Addressing members of the Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets as part of their Examination of Proposals to Improve ESG Disclosures, Mohin set out why the adoption of independent, multi-stakeholder, global ESG standards is critical to inform decision making by corporations and investors, while avoiding unnecessary reporting burdens on business.
The House Committee is hearing testimony from experts in the field on the development of the ESG Disclosure Simplification Act 2019 and other legislative proposals.
“We strongly support the ESG Disclosure Simplification Act. This bill could change the face of corporate disclosure. Current reporting is focused on short-term financial impacts that exclude key issues such as human rights, diversity, and greenhouse gas emissions. By requiring companies to report on longer-term non-financial impacts, the bill will help companies manage risks while informing investors and other stakeholders.
The bill’s framers made a very wise choice to rely on internationally recognized, independent ESG disclosure Standards. This helps create a common international language for ESG information that can facilitate global trade.
As the world’s only independent, multi-stakeholder ESG standard setter, the GRI framework has been adopted by most reporting companies around the world. Because the majority of reporting companies in the U.S. currently use the GRI standards, this act will not add reporting burden, while encouraging greater transparency and accountability.”
Watch a live webcast of the hearing here: GRI Chief Executive, Tim Mohin, testify to US House Committee on strengthening ESG legislation, GRI’s submitted written testimony to the House Committee has also been published online.
The GRI Standards are the world’s most widely used ESG reporting framework, including by 600 companies headquartered in the United States. Around the world, 139 national policies in 61 countries specifically reference or require the use of the GRI Standards by companies for ESG disclosure.
Based in Amsterdam, but with a presence around the world, the Global Reporting Initiative (GRI) helps businesses, governments, and other organizations understand and communicate their sustainability impacts.