Corporate Governance Improvement and Investor Protection Act

Corporate Governance Improvement and Investor Protection Act

This bill requires publicly traded companies to periodically disclose information related to

• environmental, social, and governance performance metrics;
• expenditures for certain political activities;
• compensation information regarding executive officers and employees;
• climate change-related risks, including direct and indirect greenhouse gas emissions and fossil fuel-related assets;
• tax jurisdiction, income, and assets of constituent entities on a country-by-country basis;
• workforce management policies, practices, and performance;
• incidents of workplace harassment and retaliation;
• cybersecurity;
• the demographic composition of the board of directors and executive officers; and
• manufacturing activity in China's Xinjiang Uyghur Autonomous Region.

The bill also establishes the Sustainable Finance Advisory Committee that must, among other duties, recommend to the Securities and Exchange Commission (SEC) policies to facilitate the flow of capital toward environmentally sustainable investments.

The SEC must report on the viability and occurrence of shareholder collective action, particularly regarding employment, environmental, social, and governance issues.

The SEC must also report on compliance issues small businesses face with respect to disclosure requirements related to environmental, social, and governance performance metrics.