How getting ahead of ESG regulations can be a major competitive advantage

Small businesses are currently exempt from the SEC’s climate disclosure rules—but that doesn’t mean they should ignore them.

Over the past several years, many large U.S. companies have taken cues from their international counterparts and prioritized environmental, social, and governance (ESG) initiatives. Companies looking to establish transparency, trust, and accountability in human capital and sustainability reporting may have started out voluntarily—but that may not be the case much longer. The SEC announced its climate-related disclosure rules in March 2024, and California has passed several laws that will require more emissions and climate disclosures.