In this final post in our series, we consider some of the competing views around the regulation of ESG investing and offer considerations for registered fund boards in today’s unsteady ESG environment.
esg
ESG and the SEC: Where Are We Now? (Part 3 of 4)
In this third post in our series, we tackle the U.S. Securities and Exchange Commission (SEC) May 2022 ESG-related disclosure proposals for registered funds and investment advisers.
ESG and the SEC: Where Are We Now? (Part 2 of 4)
By Junior Dufort & Gwen Williamson on
In part one of our four-part series, we discussed the U.S. Securities and Exchange Commission (SEC) ESG-related initiatives from 2019 to 2022 that preceded the burst of ESG-related enforcement and rulemaking activity in the first half of 2022. In this second part of the series, we explore this recent enforcement activity.
ESG and the SEC: Where Are We Now? (Part 1 of 4)
By Gwen Williamson & Junior Dufort on
In the first half of 2022, we saw significant U.S. Securities and Exchange Commission (SEC) enforcement and rulemaking activity around ESG investing, and the SEC’s intense focus in this area shows no signs of abating as we move through the third quarter. In this four-post series we:
- Summarize the 2019-2021 ESG-related initiatives at the SEC;
- Review the SEC’s ESG-related enforcement activity in the asset management industry;
- Outline the SEC’s May 2022 ESG-related rule proposals for funds and advisers; and
- Suggest factors that mutual fund boards should consider in their oversight of ESG funds and adviser ESG initiatives.
SEC Proposes Climate Disclosure Rules: 9 Things to Know
By Gwen Williamson on
Posted in Compliance, ESG Investment
On Monday, the SEC announced its much anticipated proposal on climate-related disclosure for public companies. As our colleague Allison Handy explains in her Public Chatter blog, the proposal would require disclosure on climate-related risks financial statement metrics, including information on greenhouse gas emissions, weather-related and other natural events, operational resilience, and the company’s climate-related transition…
No Summer Slump on ESG at the SEC: Board Duties, Exams, Rulemaking and Skepticism
By Gwen Williamson on
This post catches up on the ESG front at the SEC following the appointment of Gary Gensler as Chairman. The switch from a Chairman appointed by President Trump to one appointed by President Biden may add momentum to the SEC’s ESG proposals.
The SEC’s ESG Risk Alert and the CFTC’s New Climate Risk Unit
By Gwen Williamson & Perkins Coie on
Posted in Compliance, ESG Investment
On April 9, 2021, the SEC’s Division of Examinations (the “Division”) published its first risk alert detailing deficient and effective practices among investment advisers and registered and private funds (“Firms”) offering ESG strategies. The SEC is not alone in its focus on ESG matters as the CFTC and its Climate Risk Unit (“CRU”) continue to assess the risks to U.S. financial stability posed by climate change.
The SEC Is All in on ESG, Including (Potentially) D&I Issues
By Gwen Williamson on
Posted in ESG Investment
Acting SEC Chair Allison Herren Lee continues to aggressively promote the SEC’s ESG agenda by launching a dedicated ESG webpage on the SEC’s website and speaking in support of ESG initiatives. The SEC’s Asset Management Advisory Committee (“AMAC”) is also moving forward with important ESG recommendations, including promotion of diversity and inclusion measures.
Details on the SEC’s ESG Priorities, an Invitation to Comment, and Words of Caution
By Gwen Williamson on
Posted in ESG Investment
The pace of statements on ESG issues from SEC Commissioners on both sides of the political aisle shows no signs of abating. As Gary Gensler’s confirmation as SEC chair nears and acting Chair Allison Herren Lee continues to highlight the SEC’s prioritization of climate and other ESG matters affecting the financial markets, Commissioners Elad Roisman and Hester Pierce have voiced a need for restraint.
The DOL and the EU on ESG
By Gwen Williamson on
The Securities and Exchange Commission (“SEC”) isn’t the only regulator actively facilitating environmental, social and governance (“ESG”) investment strategies. Last week saw major developments at the U.S. Department of Labor (“DOL”) and the European Union (“EU”). The DOL removed potential roadblocks established by the previous administration, while the EU began implementing new disclosure regulations. On Monday, the acting chair of the SEC also continued her push for enhanced climate change and ESG disclosures.