Trick or treat! Public companies in the US may be haunted by concerns about the breadth and complexity of the SEC’s climate disclosure proposal, but if you are a US company with a presence in the EU, you may have something new to spook you—and it‘s not a ghost. We’re talking about expansive ESG reporting requirements under new EU rules expected to be finalized this fall.
As discussed in this terrific new Cooley Alert, EU’s New ESG Reporting Rules Will Apply to Many US Issuers, from Cooley’s international ESG team, the “new EU rules will require ESG reporting on a level never seen before, and will capture a whole host of companies that previously were not subject to mandatory nonfinancial reporting requirements, including public and private non-EU companies that meet certain EU-presence thresholds. For US issuers, the new EU rules will result in mandatory reporting on a broader set of ESG topics than those required under current and proposed SEC rules.” The Alert is a great way to familiarize yourself with these rules in preparation for your next board discussions of ESG reporting! Happy Halloween!!
