SEC Proposes New Disclosure and Reporting Requirements Concerning ESG for Advisors and Registered Investment Funds

Many investment funds, advisors, and companies have been working to incorporate environmental, social, and governance factors into their investment practices, but the US Securities and Exchange Commission has proposed new disclosure and reporting requirements that will mandate a common disclosure framework for demonstrating “concrete and specific measures taken to address ESG goals and portfolio allocation.” The SEC seems to be taking steps not only to tamp down on the practice of “greenwashing,” but also to ensure companies provide investors with consistent, comparable, and reliable information.