This is the eighth post in this year’s series examining important trends in white collar law and investigations. Our previous post discussed trends in False Claims Act enforcement. Up next: trends in Federal Cryptocurrency Enforcement in 2022.

Key Takeaways

• Sensitive to criticism of regulation through litigation, the SEC’s Enforcement Division has not pursued cases dealing with cutting edge ESG issues before the SEC decides what, if any, new ESG disclosure requirements to impose.
• Pressure from leading voices in both the private and public spheres will likely lead the SEC to adopt a set of standards public companies must follow in making ESG disclosures.
• While the SEC’s next step on ESG disclosure rules remains unclear, it is a good bet that the SEC will try to align with efforts underway by international standard-setting organizations to adopt a globally accepted ESG baseline reporting standard.

It was one year ago, in March 2021, that the SEC’s Enforcement Division created its ESG Task Force. The Task Force’s mission was to develop initiatives proactively identifying ESG-related misconduct. As we noted at the time, the ESG Task Force’s mandate raised questions. The term “ESG” is convenient shorthand for a collection of complex and distinct topics that – it can be fairly said – are not intuitive to all participants in the capital markets. The E, or environmental, relates to how a company deals with risks and opportunities related to climate, pollution and other...

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