Author Archives: Harvard Law School Forum on Corporate Governance and Financial Regulation

Boards Are Tying Goals to ESG Metrics

Key Findings Customers, employees, shareholders, and other stakeholders, are increasingly expecting companies to tackle environmental, social, and governance (ESG) issues. That includes the American public. In our 2021 survey of the People’s Priorities, “The board of directors holds executives accountable to the interests of its workers, customers, communities, and the environment, as well as shareholders,” […]

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Holding Foreign Insiders Accountable

1. Introduction In October 2020, Ant Group, an affiliate of the Nasdaq-listed Chinese firm Alibaba, was preparing for its initial public offering (IPO). But on October 24, Alibaba CEO Jack Ma publicly criticized Chinese regulators and Communist Party officials (Zhai et al., 2020). Chinese leaders responded forcefully, and on November 3 the Ant IPO was […]

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What Boards Should Know About Digital Assets

The proliferation of digital assets has accelerated rapidly, generating a level of market interest sufficient to influence strategy at many major financial institutions and other corporations. Digital assets are disrupting the entire financial market, driving changes in the financial ecosystem. Blockchain, the underlying distributed ledger technology (DLT) for managing digital assets, is also gaining considerable […]

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Taskforce on Nature-Related Financial Disclosures Framework: Overview of First Beta Release

In March, the Taskforce on Nature-related Financial Disclosures released the first beta version (v0.1) of the TNFD Nature-related Risk & Opportunity Management and Disclosure Framework. The first beta release marks the beginning of an 18-month consultation and development process to improve the Framework’s relevance, usability and effectiveness. The TNFD is thus encouraging market participants and […]

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California Gender Board Diversity Law Is Held Unconstitutional

The law suffers the same fate as the California board diversity law requiring directors from “underrepresented communities.” On May 13, 2022, Los Angeles Superior Court Judge Maureen Duffy-Lewis issued a ruling in Crest v. Padilla I finding that California Corporations Code Section 301.3 (SB 826), which requires publicly listed corporations in California to have women […]

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Stakeholder Capitalism and ESG as Tools for Sustainable Long-Term Value Creation

Recent high profile investigations into greenwashing, the ongoing war in Ukraine and soaring energy costs have prompted questions as to the purpose and value of ESG, and more broadly, stakeholder capitalism. Some have criticized stakeholder capitalism and ESG as “woke” politics, a threat to shareholder interests and a distraction for boards and management. Others have […]

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Posted in Boards of Directors, Comparative Corporate Governance & Regulation, ESG, Practitioner Publications | Tagged , , , , , | 3 Comments

The SEC’s Climate Proposal: Top Ten Points for Comment

We think that moderating the proposal in key respects will—far from weakening it—make it more likely to achieve the Commission’s long-term purposes of eliciting useful and consistent disclosures. Ideally the SEC’s rules would contribute to developing coherent climate disclosure practices around the world—not just for U.S. reporting companies and not just under SEC rules. With […]

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Remarks by Chair Gensler Before the Investor Advisory Committee

Thank you for that introduction, Christopher. Good morning. It is great to join the Investor Advisory Committee (IAC) today. As is customary, I’d like to note that my views are my own, and I’m not speaking on behalf of the Commission or Securities and Exchange Commission staff. I would like to welcome the new members […]

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Practical Stake

Companies today face a moment of reckoning for their political spending. The crisis that confronts U.S. democracy and the inability to address a broad range of issues demanding public action from climate change to women’s reproductive rights, voting and guns has put front and center the role of company political spending in contributing to the […]

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Weekly Roundup: June 3-9, 2022

The SEC’s Cyber Disclosures Posted by Shiva Rajgopal (Columbia University) and Alex Sharpe (Sharpe Consulting LLC), on Friday, June 3, 2022 Tags: Cybersecurity, Ransomware, Risk, Risk disclosure, SEC, SEC rulemaking, Securities regulation CEO Pay Proposals Face Growing Investor Disapproval Posted by Subodh Mishra, Institutional Shareholder Services, Inc., on Friday, June 3, 2022 Tags: Executive Compensation, Institutional Investors, Management, Proxy advisors, Proxy season, Proxy voting, Say on pay, Shareholder voting Decentralized Governance and […]

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