The House passed legislation Wednesday that would require public companies to report environmental, social and governance metrics, betting that shareholders will use the information to pressure corporations on climate risk and other issues important to Democrats.

The measure’s passage, on a 215-214 vote, marked the first time the chamber has passed sweeping legislation for transparency on sustainability issues. The package of bills would require disclosure of ESG metrics broadly and dictate specific reporting expectations on climate risks, political spending, CEO pay and taxation rates.

The package “will create clear, consistent disclosure standards for issuers and finally provide investors and our markets with the information they need to make the best investment decisions possible and to hold the companies they’re invested in accountable,” House Financial Services Chairwoman Maxine Waters, D-Calif., said Monday during a Rules Committee meeting on the measure.

Passage by the House comes as the Securities and Exchange Commission, which oversees corporate financial disclosures, says it is weighing transparency rules on climate risk, board diversity and workforce matters.

While the White House and congressional Democrats largely back ESG disclosure mandates and see the issue as aiding their goals, the effort faces opposition from Republicans and industry, who say it’s premature and too costly.

The package from California Rep. Juan C. Vargas combines ESG proposals Democrats have put forward for years. Vargas first introduced the package’s primary bill in 2019, and other measures have been promoted by Democrats who won seats for the first time during the 2018 midterm elections.

The legislation would require publicly traded companies to disclose and define ESG metrics and their view on the link between ESG and long-term business performance. It would allow the SEC to consider independent, internationally recognized disclosure standards for reporting when creating rules to facilitate the ESG disclosure and establish a Sustainable Finance Advisory Committee at the agency.

The package would also require public companies to disclose industry-tailored climate information, including direct and indirect greenhouse gas emissions and fossil fuel-related assets.

Other provisions would mandate quarterly and annual reporting on political activities by companies and their trade associations, including the amount, date, candidate and party for contributions. Companies would have to report a ratio of the percentage pay increase for executives compared to the raise for a median worker each year, and taxes paid by jurisdiction.

Before passage, the House adopted amendments that would require disclosure of the race, ethnicity, gender, sexual orientation and veteran status of board members and executives; workforce-related information, including diversity, safety and pay; settlements or judgments connected to workplace harassment; board members’ cybersecurity expertise; and sourcing of materials from Xinjiang, China.

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