In Focus

SEC Chair Gensler to Speak at CII Fall Conference

CII Backs IFRS Efforts to Create ISSB, Seeks Changes to Composition, Funding

In a July 15 letter to the International Financial Reporting Standards (IFRS) Foundation, CII applauded the foundation’s efforts to develop a global architecture for sustainability reporting in the form of an International Sustainability Accounting Standards Board (ISSB). The ISSB would establish a baseline for environmental, social and governance (ESG) disclosure. But CII pressed IFRS to boost the representation on the board of investors with knowledge of financial analysis that incorporates sustainability issues. CII also cautioned that full-time board members and adequate funding are needed to ensure the ISSB’s independence.

SEC’s Regulatory Agenda Mirrors CII’s 2021 Priorities

The SEC on June 11 released a Spring 2021 rulemaking agenda that closely aligns with most of the advocacy priorities that CII set out for this year. Areas of alignment in the new agenda include plans for the SEC to: 1) revisit its 2020 rules and guidance on proxy voting and proxy advisors as well as rules that increased the thresholds for the submission and resubmission of shareholder proposals; 2) re-propose rules that would require national securities exchanges to adopt listing standards requiring listed companies to adopt certain incentive-based compensation claw back policies; 3) examine reforms  to address concerns about potential misuse of Rule 10b5-1 trading plans by company insiders; and 4) require corporate disclosures relating to climate change, human capital, board diversity and cybersecurity risk.