SEC Chairman Gensler Orders Review of Funds’ ESG Disclosures
- SEC scrutiny follows probes into Deutsche Bank unit over ESG
- Stricter ESG rules have investment firms struggling to adapt
Gary Gensler at the SEC headquarters office in Washington, D.C., U.S.
Photographer: Melissa Lyttle/BloombergThis article is for subscribers only.
The U.S. Securities and Exchange Commission is considering more stringent disclosure requirements for investment funds amid concerns that some in the industry are making unfounded ESG claims.
“Many funds these days brand themselves as ‘green,‘ ‘sustainable,‘ ‘low-carbon,’ and so on,” SEC Chairman Gary Gensler said on Wednesday, according to the text of a speech delivered to the European Parliament Committee on Economic and Monetary Affairs. “I’ve directed staff to review current practices and consider recommendations about whether fund managers should disclose the criteria and underlying data they use to market themselves as such.”