Bracewell’s “Aligning ESG and 10-K Disclosures: A Perspective from a Chief Legal Officer” is simply a good reminder to companies of the risks associated with voluntary sustainability disclosure (wherever it appears) that is not backed by the same caliber of rigorous processes and procedures associated with conventional financial reporting, Aside from advising companies to review all sustainability disclosures from a Rule 10b-5 perspective and for consistency with the Form 10-K or other SEC filings, the memo notes the precedent-setting nature of even involuntary disclosure and the risks associated with potential cherry-picking disclosure in subsequent years to avoid presenting the company in a negative light.
See Society/Gibson Dunn & Crutcher: “ESG Legal Update: What Corporate Governance & ESG Professionals Need to Know” and additional resources on our Sustainability and Financial Reporting pages.
This post first appeared in the weekly Society Alert!