Work Item
ASTM WK77095

New Guide for Environmental, Social, and Governance (ESG) Disclosure Related to Climate and Community

1. Scope

This new task group seeks to develop a new standard guide for ESG disclosure related to climate and community. Currently no such standard guide exists within ASTM. Additionally, standardized terminology is lacking for ESG disclosure related to climate and community. This work effort seeks to fill this void by developing a comprehensive framework that produces consistent, comparable, and reliable climate-related disclosures leading to more sustainable institutions and communities. ESG generally examine criteria within the environmental (E), social (S), and governance (G) categories. The environmental component might focus on a companys impact on the environmentfor example, its energy inputs and pollution outputs. It also might focus on the risks and opportunities associated with the impacts of climate change on the company, its business, its industry, and the communities in which its facilities and operations reside. Key words: carbon footprint, resource consumption, resource depletion, energy efficiency, renewable energy, greenhouse gas emissions, waste reduction, recycle, reuse, waste management, pollution prevention. The social component might focus on the companys relationship with people and societyfor example, issues that impact diversity and inclusion, human rights, specific faith-based issues, health and safety of employees, customers, consumers, and communities locally and/or globally, company investment in its local community, and how such issues are addressed by other companies in a supply chain. Key words: Employee relations, customers and consumer relations, supply chain management, workplace health and safety, human rights, community relations. The governance component might focus on issues such as how the company is runfor example, transparency and reporting, ethics, compliance, shareholder rights, and the composition and role of the board of directors. Key words: organizational structure, diversity, compensation, business ethics, reporting, transparency, oversight, communications, regulatory compliance, tax strategy, political actions (lobbying, campaign contributions), investor relations, shareholder and stakeholder rights.


Environmental; resource consumption; renewable energy; emissions, waste reduction, pollution prevention; Social; employee relations; consumer relations; supply chain; health and safety; community relations; Governance; diversity; business ethics; transparency; communications; compliance; investor relations; shareholder rights.


ESG factors continue to become the focus of regulatory guidance, consumer demand, investor goals, academic research, and industry efforts to manage risk and maximize return. This ASTM work effort seeks to build on expanding and recent ESG initiatives in the US and worldwide. In February 2021, the US Securities and Exchange Commission (SEC) announced that its 2021 priorities will include revising and updating its 2010 guidance to public companies regarding existing disclosure requirements as they apply to climate change matters. The SEC Division of Enforcement announced in spring 2021 the creation of a Climate and ESG Task Force which will work closely with other SEC Divisions and Offices, including the Divisions of Corporation Finance, Investment Management, and Examinations. Also in spring 2021, the SEC issued a request for public comment on ESG disclosure related to climate and community. In spring 2020, the United Nations Environment Programme (USEP) Finance Initiative released its updated Principles for Responsible Investing (PRI) which provide guidance for industry, academia, regulators, investors, consumers, and communities. To date, the UNEP PRI guidance, initiated in 2006, has been adopted by over 3,000 signatories representing 60 countries worldwide.

The title and scope are in draft form and are under development within this ASTM Committee.


Developed by Subcommittee: E50.07

Committee: E50

Staff Manager: Molly Lynyak

Work Item Status

Date Initiated: 05-26-2021

Technical Contact: Eileen Snyder

Item: 001

Ballot: E50.07 (22-03)

Status: Will Reballot Item