Issue link: http://palletcentral.uberflip.com/i/1503288
38 PalletCentral • May-June 2023 palletcentral.com Adele L. Abrams is an attorney and safety professional who represents companies in litigation with OSHA and also provides safety training and consultation. The Law Office of Adele L. Abrams PC has three offices: Beltsville, MD; Denver, CO; and Charleston, WV. She may be reached at www.safety-law.com or 301-595-3520. impact of operations in terms of products made; (2) indirect effects on the environment from using electricity, trucks, vehicles; and (3) assess the "carbon footprint" of suppliers, business travel & assets that company leases. Only "material" disclosures would be required (proposed #3 may be limited to large companies). e idea is that if publicly traded companies profess to be ESG-friendly to their shareholders in annual reports, in prospectus documents to potential investors and securities advisers, and in documents filed with the SEC, it should be true! Some companies have been identified as "green washing" their image by making such pronouncements in public documents, when it is either not accurate, or they do business in the U.S. or other nations with downstream material producers or service providers that are regulatory scofflaws or engage in polluting practices, discrimination, or even use of child labor. In April 2021, the SEC issued a "Risk Alert" on ESG investing. In that bulletin, the SEC clarified that "ESG" was used in the broadest sense to encompass terms such as "socially responsible investing," "sustainable," "green," "ethical," "impact," or "good governance." e agency notes that variability and imprecision in "ESG" terminology can create confusion among investors and their financial advisors, and this can be an issue when it conflicts with personal or corporate investment goals. One ongoing issue when it comes to SEC reporting is "Materiality" – what information is considered MATERIAL to the investment decision. is has been interpreted by the U.S. Supreme Court as including information when there is a substantial likelihood that investor would consider it important in making the investment decision (TSC Industries v. Northway, SCOTUS 1976). Currently, ESG- supporting information disclosure to the SEC and the public by a corporation is voluntary and largely self-policing. e SEC proposal has enhanced transparency as a key objective. For more information on this rule as it develops, contact the Law Office of Adele L. Abrams PC at 301-595-3520.