END TO GREENWASHING: AN APPRAISAL OF THE EFFECT OF SEC PROPOSED CLIMATE- RISK DISCLOSURE RULES

The concept of Environmental, Social, and Governance (ESG) has emerged as a pivotal element in corporate law. Terms like “impact investing,” “benefit corporation,” and “greenwashing” have become commonplace. They emphasize the growing significance of ESG and the idea that investors prioritize the effects of their investments. While ESG concerns were once secondary considerations, recently, institutional investors have begun to assess business’s ESG impact before making investment decisions. In response to the potential risks associated with greenwashing, many countries have initiated requirements for mandatory ESG risk disclosures. These regulations aim to enhance transparency in addressing climate risk and safeguard the interests of investors who rely on this information to make informed investment choices. It is against this backdrop that the Securities and Exchange Commission in the United States proposed mandatory climate-risk disclosures for public corporations. This paper endeavours to emphasize the importance of recent trends of mandatory ESG and climate-risk disclosure.

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UNILAG Law Review, (2023) Volume 6 Edition 1.