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NIRI Announces Results of New ESG Survey

08/05/2021
Survey conducted in partnership with the U.S. Chamber of Commerce finds most companies have increased their climate change disclosures.

 
ALEXANDRIA, VA, AUGUST 5, 2021 – NIRI: The Association for Investor Relations, today announced the results of a climate change/environmental, social, and governance (ESG) survey in partnership with the U.S. Chamber of Commerce’s Center for Capital Markets Competitiveness (CCMC), Nasdaq, Nareit, Real Estate Roundtable, National Investor Relations Institute, TechNet, BIO, and Silicon Valley Leadership Group.

Over 430 companies participated in the survey, which was conducted to learn more about current practices and the outlook for climate change and ESG reporting from the public company perspective and to ultimately inform policymakers as they consider the impacts new mandates would have on public companies and their shareholders.

The findings show that most companies are regularly communicating with their shareholders and disclosing more information regarding the evolving risks of climate change. Companies also think the size of a company should matter determining disclosure mandates and believe consideration should be given to how new requirements could be phased in.

NIRI President and CEO Gary LaBranche, FASAE, CAE, added, “Incorporating material ESG-specific information within a comprehensive corporate disclosure program is a fundamental element of the investor relations profession. The attention of public companies and investor relations professionals to this issue and the level of disclosure to investors and other organizations that monitor ESG activities has increased dramatically in recent years. NIRI looks forward to working with the SEC to foster an approach to climate disclosure that is appropriate to the diversity of the issuer community.”

Since the Securities and Exchange Commission (SEC) issued its 2010 guidance on climate change disclosure, 59% of companies said they are disclosing more information regarding climate change. When it comes to shareholder communication, nearly two-thirds (63%) of companies are communicating with their shareholders regarding the evolving risk of climate change and 46% have increased the level of detail in climate change reporting due to shareholder input.

The survey also finds companies overwhelmingly support (89%) scaling disclosure for companies based upon size and/or type of registrant, and 74% support phasing in any new disclosure requirements for all public companies.

The SEC is expected in the coming months to issue rulemakings that create new mandates for ESG disclosure and to update guidance on the issue. An overwhelming majority (84%) of companies support a flexible approach to disclosure and agree that any climate change disclosure rules adopted by the SEC should reflect the difference between various industries.

The full survey report can be found here.

About NIRI: The Association for Investor Relations
Founded in 1969, NIRI is the professional association of corporate officers and investor relations consultants responsible for communication among corporate management, shareholders, securities analysts, and other financial community constituents. The largest professional investor relations association in the world, NIRI's more than 2,800 members represent over 1,350 publicly held companies with more than $7 trillion in stock market capitalization. Through its collaborative community, NIRI advances engagement in the capital markets and drives best practices in corporate disclosures, governance, and informed investing.

Contact : Al Rickard , 703.562.7681, arickard@niri.org

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