Essential ESG regulations for businesses working in the US

Summary Table

Regulation NameBusinesses AffectedRegulatory BodyImplementationRegulation PurposeVoluntary/MandatoryPotential BenefitsPenalties for Non-Compliance
SEC Disclosure RequirementsPublic companiesU.S. SECOngoingEnhance ESG transparency and risk disclosureMandatoryInvestor confidence, reputation, informed decisionsSEC enforcement actions
Nasdaq Board DiversityListed companiesNasdaqPendingPromote board diversityMandatoryImproved governance, diverse perspectivesDelisting or fines
Department of Labor (DOL)ERISA fiduciariesU.S. DOLProposed rulesAllow ESG integration in investment decisionsProposed rulesEnhanced investment strategies, fiduciary dutyLegal consequences
SASB (Sustainability Accounting Standards Board)All companiesSASBOngoingIndustry-specific ESG reporting standardsVoluntaryTransparency, comparability, stakeholder trustreduced investor trust
State-Level RegulationsVaries by stateState governmentsVarying by stateState-specific ESG lawsMandatory (state-specific)Compliance with local requirementsState-specific penalties

Details about the regulations