Key Takeaways from NYSE and Nasdaq on ESG

Key Takeaways from NYSE and Nasdaq on ESG

July 8, 2021, Covington Alert

On July 2, 2021, the New York Stock Exchange ("NYSE") released its report on "Best Practices for Sustainability Reporting," a set of eight guidelines designed to assist listed companies in reporting on and engaging with stakeholders about company-specific, environmental, social, and governance ("ESG") issues. In 2020, the Nasdaq Stock Market LLC ("Nasdaq") provided its overview of approaches companies may consider to engage effectively with their stakeholders on ESG issues. Nasdaq also proposed changes to its listing rules, which are pending before the U.S. Securities and Exchange Commission ("SEC"), and which would advance social and governance goals through the implementation of diversity, equity, and inclusion requirements for a Nasdaq-listed company’s board of directors.

Listed companies that currently report or that expect to report on their ESG performance should consider the NYSE and Nasdaq's guidance and actions, which are summarized in part below, when reporting on and engaging with stakeholders about their material ESG risks and opportunities.