Protecting Investor Interests: Examining Environmental and Social Policy in Financial Regulation

The SEC's mission is to protect investors, ensure fair markets, and facilitate capital formation. ESG disclosure is essential for investor protection, distinguishing between values-based investing (aligned with personal beliefs) and value-based investing (focused on financial materiality). Climate change is a bipartisan concern, and financial materiality should guide ESG integration. Policymakers, conservatives, and industry leaders recognize ESG's investment relevance, advocating clear standards for sustainability reporting and investor decision-making.